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On Thursday, global markets showed mixed results as renewed geopolitical tensions impacted investor confidence, despite generally positive corporate earnings. The S&P 500 fell 0.1% by midday in New York, while the Dow Jones Industrial Average decreased 0.2%. The NASDAQ 100 rose 0.1% as gains in major tech stocks balanced out broader weakness. In Europe, the Stoxx 600 increased 0.7%, and the MSCI World Index gained 0.2%.
A rebound in equities faded after President Donald Trump said his conversation with Russian President Vladimir Putin would be “a lengthy one.” Reports of potential loan irregularities at two US regional banks also dampened confidence. Zions Bancorp fell over 6% after disclosing a $50 million loan charge-off, while Western Alliance Bancorp plunged 11% on concerns about unsecured lending.
As US-China trade relations and the government shutdown continued to cast uncertainty over the economic situation, investors remained wary of investing. The 10-year yield fell to 4.01%, and the dollar index fell by 0.2% as treasury yields remained range-bound.
Strong corporate results offered a measure of support for equity markets. Salesforce shares climbed after projecting a return to double-digit revenue growth, while Taiwan Semiconductor Manufacturing Co lifted its 2025 growth forecast for the second time this year. Both companies benefited from continued investment in artificial intelligence infrastructure, which analysts say remains a key driver of growth for the tech sector.
Both Charles Schwab and US Bancorp have announced higher-than-anticipated quarterly earnings, indicating robust retail trading and a stable rise in loans. United Airlines has reported a resurgence in international travel, with JB Hunt Transport and Bank of New York Mellon also surpassing profit forecasts. Nevertheless, Hewlett-Packard Enterprise posted a weaker forecast, citing margin pressure in the AI hardware segment.
Market analysts said the latest results highlight a divergence between large-cap technology firms, which benefit from AI trends, and traditional industries, which face slower growth. Investors expect earnings to remain the primary driver of sentiment as the government shutdown limits access to key economic data.
Renewed US-China trade tensions continued to unsettle markets. Washington’s decision to expand technology restrictions and propose levies on Chinese shipping prompted Beijing to introduce tighter export controls on rare earth materials. Treasury Secretary Scott Bessent said the US is working with allies to coordinate a response, underscoring the strategic importance of the supply chain dispute.
Gold prices surged 1.5% to $4,270.68 an ounce as investors sought safe-haven assets. West Texas Intermediate crude slipped 0.2% to $58.13 a barrel. Analysts said geopolitical risks, combined with limited policy clarity and the delayed release of economic indicators, are likely to keep volatility elevated in the near term.
