S&P 500, Nasdaq Close Lower
Wall Street experienced a volatile session on Tuesday as investors balanced mostly positive bank earnings, Federal Reserve comments, and ongoing US-China trade tensions.
The S&P 500 was unable to sustain its rebound and closed down 0.2%, while the Nasdaq fell 0.8%, pressured by tech names such as Nvidia, and the Dow rose 203 points. Major banks, including Citigroup (+3.9%), Wells Fargo (+7.1%), JPMorgan (-1.9%), and Goldman Sachs (-2%), delivered better-than-expected results, supporting the financial sector despite some outperformers retreating after early gains.
Stocks initially sold off after China sanctioned five US units of South Korea’s Hanwha Ocean, heightening maritime trade tensions, while President Trump threatened additional retaliatory measures. Federal Reserve Chair Jerome Powell’s remarks bolstered expectations for a potential October rate cut and suggested the central bank may pause balance sheet reductions.
Source: Tradingeconomics.com