US open: Stocks mixed on US-China tensions, bank earnings
By Josh White
Date: Tuesday 14 Oct 2025
(Sharecast News) - Wall Street was mixed in morning trade on Tuesday as investors weighed renewed volatility in US-China trade relations against a busy start to the corporate earnings season led by major banks.
The Dow Jones Industrial Average rose 0.34% to 46,226.32, while the S&P 500 slipped 0.15% to 6,644.73 and the Nasdaq Composite fell 0.57% to 22,565.56.
Sentiment remained fragile after recent tariff threats reignited fears of a prolonged trade dispute.
"US equity futures took a hit, while Asian stocks extended their slide amidst fresh trade-war tensions," said Patrick Munnelly, market strategy partner at TickMill.
"The yen strengthened, as cryptocurrency prices continued their decline; Bitcoin's modest rebound following Friday's historic crypto crash has reversed overnight and did little to soften the blow of a staggering $20bn wipeout of leveraged bets, leaving parts of the market paralysed."
He added that "S&P 500 futures dropped 0.75%, with Nasdaq 100 futures slipping 0.95%, following China's latest retaliatory move against the US by slapping tariffs on American subsidiaries of Hanwha Ocean."
After warning of higher duties on Chinese imports last week, sparking Wall Street's steepest sell-off in six months, president Donald Trump moved to ease tensions, saying the United States "wants to help China, not hurt it."
But Beijing's retaliatory move to restrict operations of five US subsidiaries of South Korea's Hanwha Ocean underscored the persistence of friction between the two powers.
"President Trump's more conciliatory tone over the weekend hinted at a willingness to avoid the looming 100% tariffs, but Beijing's response has underscored its determination to assert leverage in negotiations. Rare earths remain the key battleground," said Joshua Mahony, chief market analyst at Scope Markets.
Munnelly noted that "amidst the back-and-forth, China and the US have been engaging in discussions through their economic and trade consultation framework.
"Working-level meetings reportedly took place on Monday, as confirmed by China's commerce ministry.
"US Treasury secretary Bessent expressed optimism that Trump and Xi Jinping could still meet, though he cautioned that the US is keeping all options open for responding to China's plans to limit rare earth exports."
He added that "China clarified that its export controls on rare earths and similar products are not intended to block exports entirely.
"Applications meeting the necessary criteria will continue to be processed, ensuring compliance with regulations while maintaining trade flow."
Attention also turned to Federal Reserve chair Jerome Powell's speech at the National Association for Business Economics meeting in Philadelphia, with traders looking for clues on future policy amid a data drought caused by the ongoing government shutdown.
In earnings, Wells Fargo surged 6.9% after reporting stronger-than-expected third-quarter results.
The bank's net income rose to $5.59bn, or $1.66 per share, from $5.11bn a year earlier, with revenue up 5% to $21.44bn.
It was the lender's first full quarter free from the $1.95trn asset cap imposed after its fake-accounts scandal, allowing it to lift its medium-term return on tangible common equity target to 17% to 18%.
BlackRock gained 1.2% after announcing record assets under management of $13.5trn and $205bn in net inflows during the quarter, driven by strong demand for its iShares ETFs and private-market products.
Adjusted earnings of $11.55 per share beat forecasts, although net income fell 19% due to acquisition-related expenses.
JPMorgan Chase fell 1.6% despite a 12% rise in quarterly profit to $14.4bn, supported by a 16% increase in investment-banking fees.
Revenue climbed 9% to $47.1bn, topping estimates, though earnings per share eased from the previous quarter.
General Motors rose 2.3% after warning it would take a $1.6bn charge as it scales back its electric-vehicle ambitions following US policy shifts that ended a key $7,500 tax credit for EV buyers.
The automaker said the removal of subsidies and looser emissions rules were likely to slow adoption rates.
Elsewhere, Oracle fell 2.5% while chipmaker Advanced Micro Devices advanced 2.3% after the two companies unveiled an expanded partnership to develop a large-scale AI supercluster.
The first phase, deploying 50,000 GPUs via Oracle Cloud Infrastructure, is set to launch in 2026 as demand for high-capacity AI systems accelerates.
Reporting by Josh White for Sharecast.com.
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