Mixed Outlook: Dow Jones Rose on the New York Stock Exchange, Nasdaq Fell

Mixed Close on the New York Stock Exchange

The New York stock exchange closed the day with a mixed performance, with the Dow Jones index rising by 0.44% to reach 46,270.46 points. On the other hand, the S&P 500 index decreased by 0.16%, falling to 6,644.31 points, and the Nasdaq index also dropped by 0.76%, landing at 22,521.70 points.

Trade Tensions Surprising Investors

Concerns over the renewed rise of trade tensions between the U.S. and China continue to create uncertainty among investors. Last week, U.S. President Donald Trump's announcement of restrictions on the export of rare earth elements and new tariffs on Chinese goods led to sharp fluctuations in the markets. However, Trump's later conciliatory stance caused investors to relax.

Optimistic Statements from Trump

Trump stated in his weekend remarks that his relationship with Chinese President Xi Jinping is strong and expressed hope for the future of trade relations between the two countries. He also described China’s lack of soybean purchases from the U.S. as “economically hostile” and issued warnings regarding the imposition of sanctions.

Notable Developments in the Markets

Additionally, the U.S. implementing port fees on cargo ships transporting products like toys and crude oil has reignited trade tensions. Furthermore, U.S. Trade Representative Jamieson Greer indicated that the implementation of new 100% tariffs could depend on China's actions.

Fed's Guidance on Interest Rate Policy

U.S. Federal Reserve Chairman Jerome Powell made statements regarding inflation and employment risks. Powell mentioned that the process of shrinking the bank's balance sheet could soon come to an end while emphasizing that inflation poses long-term uncertain risks.

Corporate Closures

Corporate earnings reports drew attention in the markets. While JPMorgan Chase and Goldman Sachs experienced about a 2% decline in their stock values aiming for revenue and profit growth in their third-quarter earnings, Wells Fargo shares rose over 7%, and Citigroup shares increased by 7%. Analysts note that in this period, where important data has not been released due to a government shutdown, corporate earnings present a significant opportunity to assess the tariff effects.