US STOCKS-Wall St set for lower open as US-China tensions simmer, bank results pour in
Wall Street is set for a lower open as U.S.-China trade tensions rise, with futures down across major indexes. Despite strong earnings from banks like Citigroup and Wells Fargo, many bank stocks fell due to high valuations. Analysts expect S&P 500 earnings to grow 8.8% year-over-year. Investor focus is on Fed Chair Powell's upcoming speech for insights on monetary policy. U.S. rare earth miners saw gains, while shares of Chinese companies declined amid renewed trade frictions.
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Futures down: Dow 0.95%, S&P 500 1.00%, Nasdaq 1.25%
Wells Fargo gains on Q3 profit beat
Citigroup profit climbs on record revenue
Fed Chair Powell to speak later in the day
(Updates before markets open)
By Sukriti Gupta and Twesha Dikshit
Oct 14 (Reuters) -
Wall Street’s main indexes were set to open lower on Tuesday as renewed concerns over a U.S.-China trade conflict dampened sentiment, while investors parsed results from big U.S. banks, which kicked off the third-quarter reporting season.
BlackRock’s (BLK.N)
hit a record
$13.46 trillion and JPMorgan Chase (JPM.N) raised its full-year forecast for net interest income after beating expectations for third-quarter profit. Still, BlackRock’s shares fell 0.7% premarket and JPMorgan dipped 1.1%.
Goldman Sachs (GS.N) fell 2.9% despite
beating Wall Street expectations
for quarterly profit.
Citigroup (C.N) and Wells Fargo (WFC.N) shares bucked the trend to rise 0.8% and 3.6% after reporting quarterly results.
“The most important thing to think about is not the actual earnings, which in large part were better across the board … but all of them are also trading at or near all-time highs,” said Art Hogan, chief market strategist at B Riley Wealth, on why many lenders’ shares were lower despite reporting strong quarterly results.
The earnings reports will help investors assess the impact of tariffs on corporate America and offer fresh clues on the economy at a time when major official data releases remain delayed due to an ongoing government shutdown.
Analysts on average expect S&P 500 companies’ third-quarter earnings to grow 8.8% from a year ago, according to LSEG data.
At 8:50 a.m. ET, Dow E-minis (YMcv1) were down 441 points, or 0.95%, S&P 500 E-minis (EScv1) were down 67.25 points, or 1%and Nasdaq 100 E-minis (NQcv1) were down 313.5 points, or 1.25%.
Markets had rebounded in the previous session after President Donald Trump’s conciliatory tone on trade tensions with China as well as Treasury Secretary Scott Bessent’s comments that the U.S.-China meet later this month remained on track.
On Tuesday, Washington and Beijing began charging additional port fees on ocean shipping firms that move everything from holiday toys to crude oil, reviving trade frictions.
Trump’s threats to impose additional 100% tariffs on Chinese goods on Friday over Beijing’s rare earths export controls injected volatility back into markets and knocked Wall Street’s main indexes off their record levels.
The AI-driven momentum and optimism around U.S. rate cuts have driven stock markets to record highs.
On Tuesday, investor focus will also be on Federal Reserve Chair Jerome Powell’s speech at the NABE annual meeting for further insight into the U.S. central bank’s monetary policy path.
Among other moves, shares of U.S. rare earth miners rose premarket, adding to sharp gains in the previous session.
Critical Metals (CRML.O) rose 35.5%, USA Rare Earth (USAR.O) gained 11.7% and MP Materials (MP.N) advanced 6.8%.
Broadcom (AVGO.O) lost 2.4% premarket after surging almost 10% on Monday when it partnered with OpenAI to produce the startup’s first in-house artificial intelligence processors. Reuters on Tuesday
reported
that Broadcom was launching a new networking chip.
U.S.-listed shares of Chinese companies fell. Alibaba Group (BABA.N) , JD.com (JD.O) and PDD Holdings (PDD.O) declined 3.9%, 2.5%, and 2.1%, respectively.
