Wall Street Gains as Trump Calms Trade Tensions; Regional Bank Stocks Rebound on Earnings

US stocks advanced on Friday after President Trump struck a more conciliatory tone on trade with China, easing investor fears of further escalation. Regional bank shares also rebounded following a series of upbeat earnings reports, helping lift broader market sentiment after a volatile week.

The Dow Jones Industrial Average (^DJI) climbed over 0.5%, while the S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) each gained about 0.5%. All three major indexes ended the week higher.

Trump said trade talks with China were progressing well and confirmed that his meeting with Chinese President Xi Jinping would proceed as planned. He also acknowledged that imposing the previously threatened 100% tariffs on Chinese goods from November 1 would not be “sustainable” for either economy.

Meanwhile, regional bank stocks turned positive after strong quarterly results from lenders including Truist Financial Corp. (TFC), Huntington Bancshares (HBAN), and Fifth Third Bancorp (FITB). The recovery followed Thursday’s sell-off, when two regional banks revealed loan issues allegedly linked to fraud—news that had amplified worries about US credit quality, especially after JPMorgan (JPM) CEO Jamie Dimon’s recent “cockroach” warning.

Friday’s rebound capped a choppy week marked by renewed US-China trade uncertainty and growing concern over the ongoing federal government shutdown. The closure, now among the longest in US history, has left federal workers unpaid and could stretch into November or even past Thanksgiving, as legal battles and political gridlock continue.