Stock Market Today: A Volatile Session
The main indexes experienced a significant decline in early trading due to rising tensions with China, but later rebounded thanks to promising bank earnings.
Stocks initially slumped on Tuesday amid concerns over U.S.-China trade relations. However, the main market indexes managed to finish well off their intraday lows, with one of the three ending in positive territory.
This rebound was driven by a strong start to the third-quarter earnings season and a speech from Fed Chair Jerome Powell, which kept the possibility of an October rate cut open.
True to form, stocks have been volatile so far this October.
- On Friday, the main indexes plummeted after President Donald Trump accused Beijing of being "hostile" and threatened to hike tariffs and cancel an upcoming meeting with Chinese President Xi Jinping.
- However, stocks bounced back sharply on Monday after President Trump toned down his rhetoric toward China over the weekend.
Author's summary: Stocks rebounded after a volatile session due to bank earnings and Fed Chair's speech.