Stocks finished mixed in a topsy-turvy session Tuesday, reflecting reversals in the state of U.S.-China trade tensions.
A comment just shy of noon by the U.S. Trade Representative that the two nations’ presidents are on track to meet pushed the Dow into positive territory following a lower open. Markets extended gains after Federal Reserve Chair Jerome Powell made comments that buttressed expectations that more interest-rate cuts are coming.
They then pulled back again when President Trump said the U.S. is “considering terminating business with China having to do with Cooking Oil, and other elements of Trade,” in response to China not ordering U.S. soybeans.
Earlier, Beijing effectively sanctioned U.S. units of a South Korean shipbuilding giant. China said the Hanwha Ocean subsidiaries supported the U.S. government and hurt Chinese firms’ interests. The move came as tit-for-tat special U.S. and Chinese port fees took effect.
Treasury Secretary Scott Bessent told the Financial Times that China was “in the middle of a recession/depression,” adding: “They want to pull everybody else down with them.” On Tuesday, USTR Jamieson Greer said on CNBC that President Trump and Xi Jinping are set to meet, dispelling some concern on that front.
Third-quarter earnings season got into full swing. Goldman Sachs, JPMorgan and Wells Fargo posted better-than-expected results, while BlackRock’s assets under management topped $13 trillion for the first time.
Fed Chair Powell hinted the central bank could be approaching the end of a more than three-year campaign to shrink its portfolio of Treasury securities.
In commodities, gold prices hit yet another all-time high. Silver futures pared losses and turned positive after setting their first record since 1980. Crude oil prices dropped around 1.4%.
