Stocks wobble as trade tensions between the US and China escalate
[October 15, 2025] By
DAMIAN J. TROISE
NEW YORK (AP) — U.S. indexes bounced between gains and losses on Tuesday
and wound up mixed on Wall Street as trade tensions continued to simmer
between Washington and Beijing.
The S&P 500 closed 0.2% lower after shifting between a steep morning
loss and a recovery in the afternoon. The Dow Jones Industrial Average
climbed 0.4% and the Nasdaq composite dropped 0.8% after making similar
swings. The moves mark yet another series of sharp twists for markets
over the last few days.
Wall Street tumbled on Friday for its worst day since April and bounced
back on Monday for its best day since May. The swings were prompted by
shifting trade sentiment between the U.S. and China.
The latest swing follows China’s Commerce Ministry banning dealings by
Chinese companies with five subsidiaries of South Korean shipbuilder
Hanwha Ocean, swiping at President Donald Trump’s efforts to rebuild the
industry in America. European markets were mixed and Asian markets fell.
All told, the S&P 500 fell 10.41 points to 6,644.31. The Dow Jones
Industrial Average rose 202.88 points to 46,270.46, and the Nasdaq sank
172.91 to 22,521.70.
Technology stocks are particularly sensitive to trade issues involving
China and were the biggest weights on the market. Big chipmakers and
other companies rely on China for raw materials and manufacturing.
China's large consumer base is also important for sales growth.
Chipmaker Nvidia slumped 2.6% and Broadcom fell 3.5%.

The ongoing trade war between the U.S. and the world has been an
unpredictable weight on the market. The trade conflict between the U.S.
and China is potentially the most economically consequential, owing to
those nations’ positions as the two largest economies in the world.
International shipping and shipbuilding have become a major source of
friction between Washington and Beijing, with each side imposing new
port fees on each others’ vessels. Those fees went into effect on
Tuesday.
“We remain cautiously optimistic that both sides will ultimately pursue
a negotiated resolution, given the significant economic stakes,” said
Ulrike Hoffmann-Burchardi, chief investment officer for the Americas and
global head of equities at UBS Global Wealth Management.
The U.S. economy has so far dodged any major impact from the frequently
shifting U.S. tariff policies. That could change if nations fall back
into a cycle of retaliatory tariffs and companies pass along more of the
higher costs to consumers.
The U.S. government shutdown has put a halt to the usual economic
updates on inflation, consumer spending and employment. That has made it
more difficult for investors and economists to continue gauging the
economic impact from tariffs. Wall Street is looking toward the latest
round of company earnings and forecasts to get a better sense of the
broader economic picture.
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Traders James Bodner, foreground, and Chris Lagana work on the floor
of the New York Stock Exchange, Monday, Oct. 13, 2025. (AP
Photo/Richard Drew)

Upcoming profit reports will also help Wall Street gauge the broader
market's value amid criticism that it has become too expensive after
prices rose much faster than corporate profits. For stocks to look less
expensive overall, either prices need to fall, or companies’ profits
need to rise.
Banks were the first big sector to kick off the latest round of earnings
reports and the results hint at Wall Street notching one of its most
profitable quarters ever. Still, executives from major banks expressed
various degrees of caution about markets and the economy. JPMorgan Chase
slipped 1.9%, Wells Fargo rose 7.1% and Citigroup rose 3.9%.
Industrial firms and retailers were among the other companies making
some of the biggest gains. Caterpillar rose 4.5% and Walmart rose 5%.
Beyond Meat’s stock fell 24.6% and slipped below $1 as investors fretted
over the company’s plans to cut its debt by issuing more shares.
A lack of updates about the U.S. economy has also left the Federal
Reserve without much of the information it uses to make policy
decisions. The central bank cut its benchmark interest rate by a quarter
of a percentage point in September amid worries that unemployment could
worsen. That marked its first cut of the year and Wall Street expects
similar cuts at the Fed's meetings in October and December.
Lapses in data about employment and inflation makes it more difficult
for the central bank to balance its tasks of both helping to maintain
strong employment while keeping prices stable. On Tuesday, Fed Chair
Jerome Powell again signaled that the Fed is slightly more worried about
the job market.
"Rising downside risks to employment have shifted our assessment of the
balance of risks,” he said, at a meeting of the National Association of
Business Economics in Philadelphia.
Treasury yields held relatively steady. The yield on the yield on the
10-year Treasury slipped to 4.03% from 4.05% late Friday. Bond markets
were closed in the U.S. on Monday for a holiday.

Gold rose 0.7% and remains above $4,100 per ounce. The precious metal
has soared 57% in 2025 amid a long list of uncertainties, including
tariffs and the economy.
___
AP writers Yuri Kageyama, Matt Ott and Christopher Rugaber contributed
to this report.
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