The S&P 500 staged a strong intraday rebound on Tuesday (October 14) but ultimately closed lower as renewed U.S.-China trade tensions weighed on sentiment. Late in the session, former President Donald Trump criticized China for not purchasing American soybeans, calling it an “economically hostile act” in a post on Truth Social. His remarks dragged the S&P 500 into negative territory by the close.
At the end of the volatile trading session, the S&P 500 slipped 0.2% to 6,644.31 after swinging between a 1.5% decline and a 0.4% gain. The Nasdaq Composite lost 0.8% to close at 22,521.70, having fallen as much as 2.1% earlier in the day. Meanwhile, the Dow Jones Industrial Average added 202.88 points, or 0.4%, to 46,270.46, led by gains in Caterpillar stock, despite initially falling 1.3% after the open.
Markets opened lower following news that China had imposed new sanctions targeting five U.S. subsidiaries of South Korea’s Hanwha Ocean, intensifying already fragile global trade tensions. The move prohibits Chinese entities from doing business with the sanctioned firms, which Beijing said was necessary to “strengthen national security.”
Later in the day, U.S. Trade Representative Jamieson Greer told CNBC that the future of trade relations depends on China’s actions, warning that a threatened 100% tariff hike could take effect by November 1 — or even earlier.
Despite the early losses, major indexes recovered throughout the day, with the S&P 500 trading in positive territory for most of the session. However, Trump’s late-day comments reignited investor concerns, sending stocks lower into the close.
Technology stocks such as Nvidia remained under pressure following last week’s sell-off. However, the start of earnings season has provided some optimism about market fundamentals. Shares of Citigroup and Wells Fargo jumped 3.9% and 7.2%, respectively, after reporting better-than-expected earnings. JPMorgan and Goldman Sachs also beat estimates, though their stocks saw slight declines.
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