Rita Nazareth
3 min read
In This Article:
(Bloomberg) — A rally in Wall Street’s biggest banks lifted the stock market on Tuesday, with investors also wading through a slew of headlines on President Donald Trump’s fast-evolving tariff war with top trade partners.
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Equities rose for a third straight session, with a gauge of financial heavyweights jumping 2.3%. Bank of America Corp.’s equity traders posted a record quarter, while Citigroup Inc. inched closer to a key profitability target. Boeing Co. sank as Bloomberg News reported China has ordered its airlines not to take any further deliveries of the planemaker. Stocks briefly fell on signals the European Union and US made scant progress bridging trade differences.
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“We would advise investors to avoid making hard and fast assumptions about how tariff developments will ultimately play out in the economy and on corporate profits,” said Anthony Saglimbene at Ameriprise. “Instead, we suggest investors prepare for a range of possible intermediate-term outcomes that include slow-to-positive economic and profit growth and scenarios of slow-to-negative growth.”
Bonds stabilized as Treasury Secretary Scott Bessent downplayed the recent selloff, dismissing speculation that foreign nations were dumping their holdings.
High uncertainty surrounding US trade policy and a spike in financial-market volatility has unsettled global investors over the past few weeks. Sentiment regarding economic prospects is the most negative in three decades, yet fund managers’ pessimism isn’t fully reflected in their asset allocation which could mean more losses for US stocks, a Bank of America Corp. survey shows.
Fund managers are “max bearish on macro, not quite max bearish on the market,” strategists led by Michael Hartnett wrote in a note. “Peak fear” is not yet reflected in cash allocations, which currently stands at 4.8% of assets and would typically need to rise to 6%, they added.
Some of the main moves in markets:
Stocks
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The S&P 500 rose 0.4% as of 11:33 a.m. New York time
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The Nasdaq 100 rose 0.6%
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The Dow Jones Industrial Average rose 0.2%
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The Stoxx Europe 600 rose 1.6%
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The MSCI World Index rose 0.6%
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Bloomberg Magnificent 7 Total Return Index was little changed
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The Russell 2000 Index rose 0.5%
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KBW Bank Index rose 2.3%
