U.S. stock index futures were steady on Tuesday evening following a volatile Wall Street session, as investors continued to assess the latest developments in U.S.-China trade tensions, major bank earnings, and comments from Federal Reserve Chair Jerome Powell.
Futures on the S&P 500 were little changed, while Nasdaq 100 futures slipped 0.1%, and Dow Jones futures remained nearly flat.
U.S. markets closed mixed earlier in the session the S&P 500 fell 0.2%, the Nasdaq Composite dropped 0.7%, while the Dow Jones Industrial Average gained 0.4%.
The performance came amid escalating tensions after U.S. President Donald Trump threatened last week to impose 100% tariffs on Chinese goods in response to Beijing’s restrictions on rare earth exports, a move that triggered a wave of caution across financial markets. Tensions intensified further this week after Trump hinted at halting trade with China in the vegetable oil sector, accusing Beijing of “intentionally refusing to buy U.S. soybeans,” describing it as an “economically hostile act.”
In response, China imposed sanctions on five subsidiaries of South Korea’s Hanwha Ocean, which has U.S.-linked business interests a move widely seen as retaliation for a U.S. investigation into China’s dominance in the shipbuilding industry. Both sides also imposed reciprocal port fees on vessels associated with each country, escalating the maritime dimension of their trade dispute.
Amid these heightened tensions, markets turned their attention to comments by Jerome Powell, who stated during an economic event that employment and inflation expectations had not changed significantly since the September meeting. He added that the U.S. economy remains on a stronger footing than previously expected, though he warned of signs of labor market softening. Markets interpreted his remarks as dovish, reinforcing expectations for a potential rate cut later in 2025.
On the corporate front, major U.S. banks began releasing their earnings reports, posting generally strong results but with mixed market reactions. Goldman Sachs beat expectations, supported by a rise in investment banking revenues, while JPMorgan Chase raised its full-year net interest income forecast after a robust quarter. Wells Fargo also posted better-than-expected profits, driven by stronger deal activity and improved credit performance.
Overall, the banking sector showed solid performance despite minor declines in some individual stocks. Investor focus now shifts to upcoming results from Bank of America, Morgan Stanley, and several other major financial institutions.
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