Wall Street Juggles Bank Profits and U.S.-China Trade Tensions

Wall Street saw mixed results with strong performances by major banks amid ongoing U.S.-China trade tensions. Banks like Wells Fargo and Citigroup exceeded profit estimates, while concerns over trade barriers emerged after President Trump's comments. The Dow rose, supported by industrial stocks, while concerns about trade wars lingered.

Wall Street closed with mixed signals on Tuesday, as major U.S. banks reported positive quarterly results amid persistent U.S.-China trade tensions. The banking giant Wells Fargo experienced a significant rally, alongside Citigroup, both surpassing third-quarter profit estimates.

Amidst these optimistic financial performances, Federal Reserve Chair Jerome Powell's remarks about the labor market, coupled with President Trump's statements on potential trade ties with China, contributed to market volatility. Global equities were unsettled following Trump's weekend remarks on tariffs.

Meanwhile, the Dow Jones surged, buoyed by gains in industrial stocks. As the International Monetary Fund slightly raised its 2025 growth forecast, it also cautioned that a renewed trade war could hinder economic output substantially.

(With inputs from agencies.)