US stocks fall as tensions between the US and China ease and banking results roll in

Wall Street’s major indexes fell on Tuesday as renewed concerns about a US-China trade dispute dampened sentiment as investors analyzed results from major US banks, kicking off the third-quarter reporting season.

BlackRock’s hit a record $13.46 trillion and JPMorgan Chase raised its full-year forecast for net interest income after beating expectations for third-quarter earnings. Shares of BlackRock rose 0.7% in choppy trading, while JPMorgan fell 4.1%.

Goldman Sachs fell 4.6% despite beating Wall Street expectations for quarterly profit.

Citigroup fell 0.9% and Wells Fargo rose 2.9% after beating expectations for third-quarter earnings.

The S&P 500 banking index, which has outperformed the S&P 500 this year, fell 1.4% despite strong performance from major lenders.

“The important thing to think about isn’t actual earnings, which to a large extent were better across the board…but they’re all also trading at or near record highs,” said Art Hogan, chief market strategist at B Riley Wealth, on why many lenders’ shares were lower despite strong quarterly results. The earnings reports will help investors assess the impact of tariffs on corporate America and provide new guidance on the economy at a time when the release of key official data remains delayed. Investors’ attention will also turn to Federal Reserve Chairman Jerome Powell’s speech at the annual NABE meeting for further insight into the US central bank’s monetary policy path.

At 10:08 a.m. ET, the Dow Jones Industrial Average fell 321.93 points, or 0.70%, to 45,745.65, the S&P 500 lost 55.76 points, or 0.85%, to 6,598.96 and the Nasdaq Composite lost 305.14 points, or 1.34%, to 22,389.47.

The S&P 500 technology sector lost 1.8%. Nvidia fell 3.5%. Broadcom fell 4.2% on the day after rising nearly 10% thanks to its partnership with OpenAI.

Losses in technology stocks also weighed on the Nasdaq.

S&P 500 consumer discretionary stocks fell 1.3%, while Tesla fell about 3%. Defensive consumer goods rose 0.5%.

Markets rallied last session after President Donald Trump’s conciliatory tone on trade tensions with China and Treasury Secretary Scott Bessent’s comments that the U.S.-China meeting later this month remained on track.

On Tuesday, Washington and Beijing began charging additional port fees to shipping companies, after Trump’s threat to impose additional 100% tariffs on Chinese goods on Friday over Beijing’s export controls on rare earths knocked Wall Street’s major indexes off their record levels.

In addition, the International Monetary Fund upgraded its global growth forecast for 2025 on the grounds that tariff shocks and financial conditions would be more favorable than expected, while warning that a renewed trade war between the US and China could significantly slow production.

Among other moves, U.S.-listed shares of Chinese companies fell. Alibaba Group and JD.com fell 3% and 2.5% respectively.

Issues outnumbered progressive investors by a 1.59-to-1 ratio on the NYSE and by a 1.84-to-1 ratio on the Nasdaq.

The S&P 500 recorded eight new highs over the past 52 weeks and seven new lows, while the Nasdaq Composite recorded 29 new highs and 76 new lows.