U.S. stocks rose for the week, recovering from the previous Friday’s steep sell-off, the S&P 500’s worst day since April. The rebound came amid easing U.S.-China trade tensions, dovish comments from Federal Reserve officials, and optimism from new deals in the artificial intelligence sector. The start of Q3 earnings season further boosted sentiment, as major banks like JPMorgan Chase, Citigroup, and Wells Fargo all beat expectations. By Friday, 12% of S&P 500 companies had reported, with 86% exceeding earnings forecasts, according to FactSet. However, gains were partly reversed on Thursday after two regional banks revealed loan issues linked to alleged fraud, reigniting concerns about credit risks and the health of smaller lenders. These worries, along with recent bankruptcies in the auto sector, pushed the CBOE Volatility Index to its highest level since April. Fed Chair Jerome Powell seemed to indicate that the central bank remains on track to cut short-term interest rates again this year. U.S. 10-year U.S. Treasury note yield hit its lowest level since October 2024 on Thursday, moving below 4%. The pan-European STOXX Europe 600 Index ended 0.37% higher. Nikkei 225 Index fell 1.05%. Chiba onshore benchmark CSI 300 slid 2.2%. The dollar suffered its worst week in two months, testing down to its 50- and 100-day moving average. Crude oil prices tumbled to their lowest in five months this week with WTI testing $56. Gold rallied almost 5% on the week, hitting $4,300. Cryptos were volatile.
Have a great weekend.
Charles for the team