FX.co ★ US Stocks Recover in Afternoon Trading

On Tuesday afternoon, US stocks managed to recover from earlier declines. The S&P 500 showed a modest increase of approximately 0.3%, while the Dow Jones saw a rise of over 340 points. Meanwhile, the Nasdaq managed to reduce its losses. This recovery was largely attributed to positive policy indications and robust earnings, which helped mitigate the turmoil driven by trade uncertainties. Notably, Federal Reserve Chair Powell's comments about weakening labor-market indicators strengthened expectations for a rate cut later this month. Additionally, markets responded positively to confirmation that President Trump still intends to meet with Xi Jinping, alleviating immediate concerns over trade disruptions following China's recent sanctions on US-affiliated shipping assets. Strong performances in the banking sector also contributed to the market's upward movement, with Citigroup surging over 4.5% after surpassing revenue expectations across all its business areas, and Wells Fargo climbing nearly 7% after enhancing a critical profitability metric and setting a growth target for the post-regulatory period. Conversely, Goldman Sachs saw a decline of about 1.5%, despite achieving record revenue for the third quarter, as it cautioned about potential job cuts aimed at reducing costs and exploring opportunities in artificial intelligence.