Investing.com – U.S. stock index futures were little changed Tuesday evening, following a volatile session on Wall Street as investors digested developments on U.S.-China trade tensions, major bank earnings and remarks from Federal Reserve Chairman Jerome Powell.

Wall Street closes mixed with focus on US-China tensions, Powell comments

Wall Street closed mixed in regular trading. The S&P 500 edged down 0.2%, whileNASDAQ Compositedown 0.7%.Dow Jones Industrial Averageended 0.4% higher.

The market landscape has become more volatile after President Donald Trump last week threatened to impose 100% tariffs on Chinese goods in response to Beijing’s restrictions on rare earth exports, sending a wave of caution through financial markets.

Tensions escalated further this week when Mr Trump proposed cutting off trade with China in edible oils, accusing Beijing of “intentionally withholding” US soybeans and describing the move as “economic hostility”.

Meanwhile, China has targeted US-linked units of South Korean shipbuilder Hanwha Ocean, sanctioning five subsidiaries in what observers see as retaliation for a US investigation into China’s dominance in shipbuilding.

Both countries have imposed port charges on ships bound for the other, adding maritime pressure to the trade war.

Amid that tension, market participants turned their attention to Fed Chairman Powell’s remarks Tuesday at the National Association for Business Economics.

Mr. Powell said the outlook for jobs and inflation “doesn’t appear to have changed much” since the Fed’s September meeting. He signaled that the U.S. economy may be on a firmer trajectory than some had anticipated, but warned that the labor market is weakening significantly.

This tone was perceived by the market as leaning towards lowering interest rates, supporting expectations of further rate cuts by the end of 2025.

Bank of America earnings report ,Morgan Stanleyto be announced soon

Earnings from major US banks began to be reported on Tuesday, with strong results but mixed market reaction.

Goldman Sachs(NYSE:GS) beat expectations, boosted by strong investment banking fees, whileJPMorgan(NYSE:JPM) raised its full-year net interest income forecast after a strong quarter.

Wells Fargo(NYSE:WFC) also beat earnings estimates, helped by higher trading activity and improved credit performance.

The banking sector was broadly higher, although some individual stocks fell slightly. Ahead on Wednesday, attention will turn to earnings.Bank of America(NYSE:BAC), Morgan Stanley (NYSE:MS), and other banks.