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US Equity Indexes Rise This Week as Regional Banks Rebound Amid Easing China Trade Tensions

BY MT Newswires | ECONOMIC | 10/17/25 04:54 PM EDT

04:54 PM EDT, 10/17/2025 (MT Newswires) -- US equity indexes rose this week as credit-stress concerns surrounding regional banks dissipated, the Federal Reserve sent dovish signals amid continuing data fog, and the Trump administration avoided an escalation in China trade tensions.

* The S&P 500 closed at 6,664.01 on Friday versus 6,552.5 a week ago. The Nasdaq Composite stood at 22,679.9 compared with 22,204.4 a week earlier. The Dow Jones Industrial Average ended at 46,190.6, versus 45,479.6 at the end of last week.

* The SPDR S&P Regional Banking ETF (KRE) rebounded 1.6% on Friday as regional banks, including Truist Financial (TFC), Huntington Bancshares (HBAN), and Fifth Third Bancorp (FITB), reported strong quarterly results bereft of credit concerns. Baird upgraded Zions Bancorporation (ZION) to outperform from neutral, with a $65 price target, after the lender disclosed a $50 million charge-off. Shares fell to $46.93 on Thursday from $54.03 on Wednesday.

* Chair Jerome Powell said the unemployment rate remained low through August, but payroll gains have slowed sharply, setting the stage for rate cuts. "In this less dynamic and somewhat softer labor market, the downside risks to employment appear to have risen," the Fed chief said. Powell also signaled that the end of quantitative easing may be on the horizon, music to the ears of bulls flying high on the AI wave.

* President Donald Trump reportedly said the imposition of a 100% tariff on Chinese goods would not be sustainable, walking back his earlier threats in response to Beijing's announcement of export controls on rare earth. Trump confirmed plans to meet his Chinese counterpart, Xi Jinping, in South Korea at the end of October, alleviating concern that the meeting was at risk following his outburst last Sunday.

* Further, US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng were scheduled to speak to discuss the ongoing trade talks between the two global economic giants, CNBC reported, citing a senior Trump administration official.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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