US stocks finished stronger on Friday, lifted by a calmer outlook on trade negotiations with China and a rebound in regional banks after Thursday’s sharp sell-off.
The Dow Jones Industrial Average rose 238 points, or 0.52%, to close at 46,190.61. The S&P 500 gained 0.53% to 6,664.01, while the Nasdaq Composite added 0.52% to 22,679.98.
Traders welcomed comments from Treasury Secretary Scott Bessent, who confirmed fresh talks with his Chinese counterpart, and from President Trump, who suggested his meeting with President Xi Jinping was still likely later this month. That eased concerns over the planned 100% tariff hike on Chinese goods from 1 November.
Key reports from Coca-Cola and Netflix midweek, followed by Tesla, IBM, Intel, and Ford, will shape sentiment and test whether the US bull run can continue.
Bank stocks rebound after Thursday rout
Regional lenders that led Thursday’s market plunge recovered ground. Zions Bancorp climbed nearly 6% after Baird upgraded the stock, saying its sharp losses were excessive relative to potential loan write-downs. Western Alliance also rebounded after heavy falls the day before, when both banks disclosed credit losses tied to bankrupt auto firms Tricolor and First Brands.
Jefferies rose 6% on Friday after an upgrade from Oppenheimer, recovering part of its 11% decline a day earlier. Meanwhile, Fifth Third Bancorp gained 1.3% after reporting stronger-than-expected earnings, even as credit provisions rose due to exposure to Tricolor.
The SPDR S&P Regional Banking ETF added 1.6% on Friday but still finished the week down 1.9%.
Volatility eases as fears subside
Wall Street’s “fear gauge,” the Cboe Volatility Index, fell steadily on Friday after spiking the previous day. The 10-year US Treasury yield edged back above 4% as investors moved out of safe havens.
Despite the week’s turbulence, all three major indexes posted gains. The S&P 500 rose 1.7%, the Dow advanced 1.6%, and the Nasdaq gained 2.1%, supported by strong early earnings results.
ASX set for softer open
Australian shares are expected to open slightly lower after Friday’s modest pullback, with futures for the S&P/ASX 200 pointing down 7 points, or 0.08%, to 9003.
