US stocks came back from significant losses Friday as President Trump eased worries of further trade escalation with China, while regional bank stocks also recovered amid investor jitters over bad loans and US credit quality.
Dow Jones Industrial Average futures (YM=F) gained roughly 0.2%, while those on the S&P 500 (ES=F) hovered around the flatline. Contracts on the tech-heavy Nasdaq 100 (NQ=F) pared steeper losses, down 0.2%.
Trump on Friday said the 100% tariffs he has threatened to add to existing duties on Chinese goods from Nov. 1 would not be a “sustainable” level for each side’s economy. He confirmed plans to meet with Chinese leader Xi Jinping later this month but said, “We’ll see what happens.”
Meanwhile, US regional bank stocks turned positive after a slew of positive earnings updates on Friday from those lenders, including Truist Financial Corp., (TFC), Huntington Bancshares (HBAN), and Fifth Third Bancorp (FITB).
Wall Street jitters had grown Thursday after two US regional lenders disclosed problems with loans, allegedly linked to fraud. Those troubles deepened concerns sparked by JPMorgan (JPM) CEO Jamie Dimon’s “cockroach” warning, seen as further signs of cracks in the creditworthiness of US borrowers.
The stock gyrations cap a turbulent week for markets, plagued by the rising US-China trade tensions and the prospect of a prolonged US federal shutdown.
The shutdown is dragging on, now tied for the third longest in history, with some lawmakers now worried the stoppage could extend into November and even past Thanksgiving. Federal workers’ paychecks remain suspended as Trump threatens to block back pay and the courts consider his effort to fire thousands. .
LIVE 10 updates
