Trump says 100% tariffs on China not sustainable
Eli Lilly falls after Trump vows weight-loss drug price cut
S&P 500 0.44%, Nasdaq 0.42%, Dow 0.55%
By Noel Randewich and Twesha Dikshit
Oct 17 – Wall Street climbed on Friday as investors assessed U.S. President Donald Trump’s latest remarks on China, while quarterly results from regional banks eased concerns about credit risks. Trump said his proposed 100% tariff on goods from China would not be sustainable, but blamed Beijing for the latest impasse in trade talks that began with Chinese authorities tightening control over rare earth exports. Trump unveiled the new tariffs a week ago, along with new export controls on “any and all critical software,” to go into effect on November 1.
“The market doesn’t really know what to take when Donald Trump speaks,” said Robert Pavlik, senior portfolio manager at Dakota Wealth. “There’s just a lot of back-and-forth comments with regards to China and trade tariffs and pretty much everything else.”
Regional bank stocks rebounded following a selloff on Thursday, when Zions Bancorporation disclosed losses tied to two commercial and industrial loans and Western Alliance revealed it had initiated a lawsuit alleging fraud by Cantor Group V, LLC.
“There’s a lot more bark than bite on the credit fears,” said Jed Ellerbroek, a portfolio manager at Argent Capital. “Looking through all the big banks’ results, credit is very good. Overall, there are very few pockets of weakness.”
Truist Financial gained 4%, after the bank reported higher third-quarter profit. Fifth Third Bancorp rose 1.7%. Zions shares regained 3.8%, while Western Alliance advanced 2.4%.
The S&P Composite 1500 Regional Banks index climbed 1.5% after tumbling almost 6% the day before.
The S&P 500 financial sector index, which includes the largest U.S. banks, rose 0.8%.
Robust earnings from big JPMorgan and other big banks this week helped get the third-quarter earnings season off to an upbeat start. Analysts on average see S&P 500 earnings climbing 9.3% in the third quarter, an improvement from expectations of 8.8% at the start of October, according to LSEG I/B/E/S.
Following a nearly 14% gain in 2025, the S&P 500 is valued at 23 times expected earnings, its priciest level in five years.
The S&P 500 was last up 0.44% at 6,658.35 points.
The Nasdaq gained 0.42% to 22,656.52 points, while the Dow Jones Industrial Average was up 0.55% at 46,205.94 points.
Nine of the 11 S&P 500 sector indexes rose, led by consumer staples, up 1.06%, followed by a 0.85% gain in financials.
The three main U.S. indexes were on track to register weekly gains.
The CBOE volatility index, investors’ fear gauge, dropped to 23.3 points, after hitting its highest level in nearly six months at 28.99 earlier in the day.
Wall Street’s most valuable companies were mixed, with Tesla and Apple rising over 1% each, and Amazon falling about 1%. Eli Lilly fell about 3% after Trump said he would bring down prices of weight-loss drugs. State Street dropped 3% after the bank’s third-quarter net interest income missed estimates.
Advancing issues outnumbered falling ones within the S&P 500 by a 1.6-to-one ratio.
The S&P 500 posted 6 new highs and 6 new lows; the Nasdaq recorded 30 new highs and 105 new lows.
This article was generated from an automated news agency feed without modifications to text.
