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New Tariffs Threatened and Eased, Rises in Bank Concerns - A Round Up of the Choppy Market This Past Week.

  • Writer: Doug Cohen
    Doug Cohen
  • Oct 22
  • 2 min read

 

Through the highly volatile week, the market experienced swift changes in direction. The week started off on October 13th, where the Dow Jones Industrial Average (DJI) fell 1.9%, the S&P 500 dropped 2.7%, and the tech dependent Nasdaq Composite dropped a staggering 3.6%. This being the effect of news about potential tariff and trade limitations to China following a post made by president Donald Trump on social media platform, Truth Social (October 10th).  

  

Tuesday, was a day of uncertainty as the market slowly rose throughout the day, as China-U.S. trade tensions continued, but quickly dropped before closing to result in the Dow increasing by 0.4%, the S&P 500 decreasing by 0.2%, and the Nasdaq Composite dropping by 0.8%  

  

Wednesday offered a positive outlook to investors as many bulge bracket banks reported strong quarters including JPMorgan, Chase, Citigroup, Wells Fargo and Goldman Sachs. This resulted in the market trending upwards, however being dampened by persistent U.S. - China trade tensions. The day closed out with the S&P 500 rising 0.4%, the Nasdaq Composite rising 0.7%, and the Dow remaining mostly unchanged as it fell by less than 0.1%.  

  

Thursday’s market slid over fear of midsize banks and potential problems with the loans they have been making, as Zions Bancorporation reported “apparent misrepresentations and contractual defaults” and as Western Alliance Bancorp disclosed it had sued a borrower for alleged fraud. This led to the Dow dropping 0.7%, the S&P 500 dropping 0.6%, and Nasdaq Composite dropping 0.5%.

 

The eventful week closed off on Friday with bank and tariff concerns easing. The result being the S&P 500 index rising by 0.53%, the Nasdaq composite index increasing by 0.52%, and the Dow finishing the day up 0.52%

 

Overall, this week once again proved the market’s sensitivity to Trump tariff news and financial-sector health, as investors continue to navigate an ever-changing market.

 
 
 

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