Tesla earnings preview, Trump meets with Zelensky in DC, and no end in sight for government shutdown

Market Overview - Major indices are experiencing upward movement, with the Dow up approximately 300 points, S&P 500 and NASDAQ both up about 0.6% [1][2][3] - Over the past week, all major indices have risen about 12%, indicating a recovery from previous volatility [3] - The VIX index, a measure of market volatility, has decreased from around 28-29 to 22, suggesting reduced market anxiety [5][6] US-China Trade Relations - President Trump has expressed optimism regarding US-China trade talks, stating that threatened tariffs are "not sustainable" [9][10] - Upcoming meetings between US Treasury Secretary and Chinese officials are expected to solidify discussions for a broader trade deal [12][14] - Despite Trump's previous threats of a 100% tariff on China, he has not completely ruled it out, indicating ongoing tensions [13][14] Regional Banks and Credit Quality - Regional banks are showing signs of recovery, with Huntington Bank reporting a 12% year-over-year revenue growth and nearly 20% increase in earnings [109][110] - Credit quality remains stable, with charge-offs reported at 22 basis points, consistent with previous quarters [112] - Concerns about systemic issues in the banking sector are viewed as idiosyncratic, with the overall banking sector remaining strong since the financial crisis [115] Earnings Season Insights - American Express reported better-than-expected earnings, driven by a successful refresh of its platinum card, which saw initial demand exceed expectations [45][46] - CSX railroad company exceeded revenue estimates for Q3, with analysts optimistic about the new CEO's strategic direction [50][52] - The focus on profit margins in Q3 and Q4 is critical, as companies may face challenges in passing tariff costs to consumers [29][30] Cryptocurrency Market Impact - The cryptocurrency market has seen a significant decline, with Bitcoin dropping approximately 12% over the past 10 days, attributed to increased trade tensions and market volatility [103][104][107] - The overall crypto market has shrunk by $600 billion since last Friday, indicating a broader sell-off in risk-on assets [103][104]