WASHINGTON (dpa-AFX) - Stocks moved sharply lower in early trading on Tuesday but have shown a substantial turnaround over the course of the session. The major averages have climbed well off their lows of the session, with the Dow and the S&P 500 reaching positive territory.
After plunging by more than 600 points to its lowest intraday level in a month, the Dow is up 334.99 points or 0.7 percent at 46,402.57. The S&P 500 is also up 14.05 points or 0.2 percent at 6,668.77, although the tech-heavy Nasdaq is down 50.81 points or 0.2 percent at 22,643.80.
The recovery on Wall Street comes as upbeat news from big-name financial companies has helped offset renewed concerns about trade tensions between the U.S. and China.
Shares of Wells Fargo (WFC) have spiked by 8.3 percent after the financial giant reported better than expected third quarter results and raised its profitability target.
Citigroup (C) has also surged by 4.4 percent after reporting third quarter results that exceeded estimates, while JPMorgan Chase (JPM) remains lower despite reporting better than expected third quarter results.
Stocks came amid under pressure earlier in the session amid concerns about trade tensions between the U.S. and China after President Donald Trump's more conciliatory post about China helped trigger a substantial rebound on Monday.
Asked about the dispute over China's expansion of export controls on rare earths, a spokesperson for China's Ministry of Commerce suggested the country was only responding to Washington's restrictions on Chinese firms.
'The U.S. has long overstated national security, abused export controls, and adopted discriminatory practices against China,' the spokesperson said, according to Google translate.
They added, 'In particular, since the Madrid trade talks between China and the U.S., the U.S. has continued to impose a series of new restrictive measures on China, which have seriously harmed China's interests and seriously undermined the atmosphere of the bilateral trade talks.'
The spokesperson reiterated that China is willing to 'fight to the end' if there is a trade war but said the 'door is open' to trade talks.
Beijing has also announced sanctions against five U.S.-based subsidiaries of South Korean shipping giant Hanwha Ocean, accusing the firm of cooperating with Washington in its curbs on China's maritime sector.
Sector News
Airline stocks have moved sharply higher over the course of the session, with the NYSE Arca Airline Index soaring by 4.7 percent.
Substantial strength has also emerged among banking stocks, as reflected by the 2.4 percent surge by the KBW Bank Index.
Housing, networking and telecom stocks have also shown strong moves to the upside, while some weakness remains visible among computer hardware stocks.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's Nikkei 225 Index plunged by 2.6 percent, while Hong Kong's Hang Seng Index tumbled by 1.7 percent.
Most European stocks also moved to the downside on the day. The German DAX Index slid by 0.6 percent and the French CAC 40 Index dipped by 0.2 percent, although the U.K.'s FTSE 100 Index bucked the downtrend and inched up by 0.1 percent.
In the bond market, treasuries are seeing modest strength as trading resumes following the holiday on Monday. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down 1.5 basis points at 4.036 percent.
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