Stocks Settle Higher as Bank Worries and Trade Tensions Recede

Market Overview - The escalation of trade tensions between the US and China, along with the ongoing US government shutdown and concerns about credit quality, has led to increased demand for precious metals, with gold and silver reaching all-time highs before experiencing a decline due to easing trade tensions and stabilization in bank stocks [1] - Stock indexes saw support as trade tensions eased, with President Trump stating that current tariffs on China are "not sustainable" and expressing intentions to meet with Chinese President Xi Jinping [3] - The S&P 500 Index closed up +0.53%, the Dow Jones closed up +0.52%, and the Nasdaq 100 closed up +0.65% on Friday [5] Earnings Reports - The Q3 earnings season is underway, with 78% of S&P 500 companies that have reported so far beating forecasts. However, Q3 profits are expected to rise by only +7.2% year-over-year, the smallest increase in two years [7] - American Express reported Q3 EPS of $4.14, exceeding the consensus of $3.99, leading to a +7% increase in its stock [15] - Truist Financial reported Q3 non-interest income of $1.56 billion, better than the consensus of $1.49 billion, resulting in a +3% increase in its stock [16] Sector Performance - Most of the Magnificent Seven technology stocks rallied, with Tesla closing up more than +2% and Apple up more than +1% [14] - Mining stocks fell sharply after gold prices dropped by more than 1% and silver prices sank by over 5%, with Kinross Gold down more than -9% and Newmont down more than -7% [19] - Chipmakers and AI infrastructure stocks experienced declines due to long liquidation, with Oracle down more than -6% and Super Micro Computer down more than -3% [18] Interest Rates and Economic Indicators - The markets are anticipating a 100% chance of a -25 basis point rate cut at the next FOMC meeting on October 28-29 [8] - The ongoing US government shutdown is delaying key economic reports, with an estimated 640,000 federal workers expected to be furloughed, potentially increasing jobless claims and raising the unemployment rate to 4.7% [6][11]