The Dow Jones Industrial Average rose Friday as traders tried to move past credit concerns that sparked a big selloff in regional banks Thursday.
The 30-stock index gained 238.37 points to end the day and the week at 46,190.61.
The S&P 500 piled on 34.94 points to 6,664.01.
The tech-heavy NASDAQ also recovered 117.44 points to 22,679.98.
Stocks remain on track for weekly gains despite Thursday’s decline.
The S&P 500 is pacing up 1.7% after a strong start to the third-quarter earnings. The Dow has added about 1.7% week to date, while the NASDAQ is on track for a 2.2% gain.
Stocks extended their gains in afternoon trading after Treasury Secretary Scott Bessent said he would be speaking with his Chinese trade counterpart Friday evening.
Trump also said from the White House that a meeting with China President Xi Jinping was still likely at the end of the month. The comments helped ease concern that the threat of 100% additional tariffs against China on Nov. 1 might not come to pass.
Shares of companies that led Thursday’s bank rout rebounded earlier Friday, as traders bet any bad credit bets were one-offs and not part of a bigger crisis.
Zions and Western Alliance disclosed bad loans over the last 48 hours, which sparked a big selloff in the stocks that eventually dragged down the whole market Thursday. Zion lost 13%, while Western Alliance tanked by 11% Thursday.
But Zions Bancorp climbed 5% Friday after receiving an upgrade from Baird, which said the drop in market value for the regional bank was out of proportion considering the size of loan losses it was potentially facing. Investment bank Jefferies, caught in the storm for its exposure to bankrupt auto parts retailer First Brands, was last up 6% after Oppenheimer raised its rating to outperform. Jefferies was down 11% Thursday.
Better-than-expected earnings Friday from Fifth Third Bancorp also assuaged worries, sending the stock higher by about 1%. The bank’s profit jumped last quarter even after posting an increase in credit losses tied to exposure to bankrupt subprime auto lender Tricolor.
Prices for the 10-year Treasury retreated, raising yields to 4% from Thursday’s 3.97%. Treasury prices and yields move in opposite directions.
Oil prices edged up nine cents to $57.55 U.S. a barrel.
Gold prices dumped $59.90 to $4,244.70 U.S. an ounce.
Dow Soars Despite Bank, China Concerns
