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Tag Archives: United States

Wall Street rises to finish its best week in 2 months after bank stocks stabilize

Wall Street rises to finish its best week in 2 months after bank stocks stabilize

By STAN CHOE AP Business Writer

NEW YORK (AP) — Wall Street cruised to the finish of a winning week on Friday after banks recovered some of their sharp losses from the day before.

The S&P 500 rose 0.5%. The Dow Jones Industrial Average added 238 points, or 0.5%, and the Nasdaq composite climbed 0.5%.

The gains capped the best week for the S&P 500 since early August, but it was a roller-coaster ride. Indexes careened through several jarring swings as worries built about the financial health of small and midsized banks, as well as the souring trade relationship between the United States and China.

Some of the nervousness around U.S.-China trade tensions eased on Friday after President Donald Trump said that very high tariffs he threatened to put on Chinese imports are not sustainable.

Trump also told Fox News Channel’s “Sunday Morning Futures” that he would meet with China’s leader, Xi Jinping, at an upcoming conference in South Korea. That’s counter to an earlier, angry posting he made on social media, where he said there seemed to be “no reason” for such a meeting.

Bank stocks, meanwhile, stabilized on Friday after several reported stronger profit for the latest quarter than analysts expected, including Truist Financial, Fifth Third Bancorp and Huntington Bancshares. That helped steady the group, a day after tumbling on worries about potentially bad loans.

The two banks at the center of Thursday’s action also rose to trim some of their sharp losses.

Zions Bancorp., which is charging off $50 million of loans where it found “apparent misrepresentations and contractual defaults” by the borrowers, climbed 5.8% following its 13.1% loss.

Western Alliance Bancorp, which is suing a borrower due to allegations of fraud, rose 3.1% after its 10.8% fall on Thursday.

Scrutiny is rising on the quality of loans that banks and other lenders have broadly made following last month’s Chapter 11 bankruptcy protection filing of First Brands Group, a supplier of aftermarket auto parts.

One of the financial firms that could feel pain because of First Brands’ bankruptcy, Jefferies Financial Group, rose 5.9% Friday. It had come into the day with a loss of roughly 30% since mid-September.

The question is whether the lenders’ problems are just a collection of one-offs or a signal of something larger threatening the industry. Uncertainty is high following a long stretch where many borrowers were able to stay in business, even with the weight of higher interest rates. And with prices soaring to records for all kinds of investments, the appetite for risk may have gotten too high.

JPMorgan CEO Jamie Dimon addressed the issue on an earnings conference call with analysts earlier this week.

“When you see one cockroach, there are probably more,” Dimon said. “Everyone should be forewarned on this one.”

“But banks make loan loss provisions and typically have plenty of capital to keep the cockroaches from causing structural damage,” said Brian Jacobsen, chief economist at Annex Wealth Management. “Based on earnings and data so far, it looks like this isn’t an infestation” and that the potential canary in the coal mine “is probably passed out and not dead.”

All told, the S&P 500 rose 34.94 points to 6,664.01. The Dow Jones Industrial Average climbed 238.37 to 46,190.61, and the Nasdaq composite gained 117.44 to 22,679.97.

In the bond market, Treasury yields steadied following their sharp slides from Thursday, which came as investors rushed into investments seen as safer.

The yield on the 10-year Treasury edged up to 4.00% from 3.99% late Thursday.

Gold also pulled back from its latest record as more calm seeped through the market.

The price for an ounce fell 2.1% to $4,213.30, but it’s still up roughly 60% for the year so far. Besides worries about tariffs, gold’s price has also surged on expectations for coming cuts to interest rates by the Federal Reserve and concerns about the massive amounts of debt that the U.S. and other governments worldwide are building.

In stock markets abroad, indexes dropped across much of Europe and Asia after Wall Street’s weakness from Thursday moved westward.

Germany’s DAX lost 1.8%, and Hong Kong’s Hang Seng sank 2.5% for two of the world’s bigger moves.

___

AP Writers Teresa Cerojano and Matt Ott contributed.

Trump tells Zelenskyy he’s reluctant to sell Ukraine Tomahawk missiles after warning Russia he might

Trump tells Zelenskyy he’s reluctant to sell Ukraine Tomahawk missiles after warning Russia he might

WASHINGTON (AP) — President Donald Trump has signaled to Ukrainian President Volodymyr Zelenskyy that he’s leaning against selling long-range Tomahawk cruise missiles to Kyiv. Zelenskyy at the start of Friday’s White House talks said he had a “proposition” in which Ukraine could provide the United States with its advanced drones, while Washington would sell Kyiv the Tomahawks, which Ukrainian officials say they desperately need to motivate Russian President Vladmir Putin to get serious about peace talks. But Trump said he had “an obligation also to make sure that” the United States is “completely stocked up.” The U.S. leader added he was optimistic the war would soon end, mitigating Ukraine’s need for the powerful weapon.… Continue Reading

Ex-Trump national security adviser Bolton charged with storing and sharing classified information

Ex-Trump national security adviser Bolton charged with storing and sharing classified information

GREENBELT, Md. (AP) — Former Trump administration national security adviser John Bolton has been charged with storing top secret records at home and sharing with relatives notes that contained classified information. The 18-count indictment Thursday also suggests classified information was exposed when operatives believed linked to the Iranian regime hacked Bolton’s email account in 2021 and gained access to sensitive material he had shared. The investigation into Bolton, who served for more than a year in President Donald Trump’s administration before being fired in 2019 and emerging as an outspoken critic of the Republican leader, burst into public view in August when the FBI searched his home in Maryland and his office in Washington.… Continue Reading

Senate Democrats, holding out for health care, reject government funding bill for 10th time

Senate Democrats, holding out for health care, reject government funding bill for 10th time

WASHINGTON (AP) — Senate Democrats are rejecting for the 10th time a stopgap spending bill that would reopen the government. They are insisting they won’t back away from demands that Congress take up health care benefits. The repetition of votes on the funding bill has become a daily drumbeat in Congress. It underscores how intractable the situation has become as the vote has at times been the only item on the agenda for the Senate floor. House Republicans have left Washington altogether. The impasse has lasted over two weeks, leaving hundreds of thousands of federal workers furloughed, even more without a guaranteed payday and Congress essentially paralyzed.… Continue Reading

Trump urges leaders to put ‘old feuds’ aside as he calls for a new era of harmony in the Middle East

Trump urges leaders to put ‘old feuds’ aside as he calls for a new era of harmony in the Middle East

SHARM EL SHEIKH, Egypt (AP) — President Donald Trump is calling for a new era of harmony in the Middle East. Trump spoke Monday during a global summit in Egypt on Gaza’s future, trying to advance broader peace in the region after visiting Israel to celebrate a U.S.-brokered ceasefire with Hamas. Trump urges world leaders at the summit to put “the old feuds” to rest and seize momentum, calling the Israel-Hamas ceasefire the first steps to peace. The summit marks a fragile moment of hope for Middle East peace. Trump says there’s a once-in-a-lifetime chance “to declare that our future will not be ruled by the fights of generations past.”… Continue Reading

Education Department layoffs hit offices that oversee special education and civil rights enforcement

Education Department layoffs hit offices that oversee special education and civil rights enforcement

WASHINGTON (AP) — A new round of layoffs at the Education Department is depleting an agency that was already hit hard in the Trump administration’s previous mass firings, threatening new disruption to the nation’s students and schools. The Trump administration started laying off 466 Education Department staffers on Friday amid mass firings across the government meant to pressure Democratic lawmakers over the federal shutdown. The layoffs would cut the agency’s workforce by nearly a fifth and leave it reduced by more than half its size when President Donald Trump took office. The cuts threaten disruption in areas from special education to civil rights enforcement and after-school programs.… Continue Reading

Israel lays out plans for hostage release and prisoner swap expected on Monday

Israel lays out plans for hostage release and prisoner swap expected on Monday

CAIRO (AP) — Preparations are underway for aid to enter Gaza and for the release of hostages under a new ceasefire deal. The truce has brought cautious calm to the area. On Monday, all the living hostages among the 48 still held by Hamas are expected to be freed. U.S. President Donald Trump is set to arrive in Israel to witness the release and will later attend a peace summit in Egypt. The release of 2,000 Palestinian prisoners held in Israel is also part of the deal. The United Nations has aid ready to enter Gaza once Israel approves. The war, which began in 2023, has caused significant destruction and loss of life.… Continue Reading

Trump directs the Pentagon to use ‘all available funds’ to ensure troops are paid despite shutdown

Trump directs the Pentagon to use ‘all available funds’ to ensure troops are paid despite shutdown

WASHINGTON (AP) — President Donald Trump says he’s directed the Defense Department to use “all available funds” to ensure that U.S. troops are paid on Wednesday despite the government shutdown. Trump said in a social media post Saturday that he was acting because “our Brave Troops will miss the paychecks they are rightfully due on October 15th.” He said he was using his authority as commander in chief to direct Defense Secretary Pete Hegseth “to use all available funds” to pay the troops. They were in danger of not receiving their next paycheck on Wednesday after the government shut down on Oct. 1.… Continue Reading

Lumbee leader to join North Carolina statehouse as tribe’s federal recognition push gains attention

Lumbee leader to join North Carolina statehouse as tribe’s federal recognition push gains attention

LUMBERTON, N.C. (AP) — The leader of the Lumbee Tribe of North Carolina is set to join the state legislature. Robeson County Republican Party committee members unanimously recommended John Lowery on Tuesday to fill a state House seat most recently held by his brother. Jarrod Lowery resigned this week to take a job with the U.S. Interior Department. John Lowery has been Lumbee Tribe chairman since 2022 and plans to remain at that post as well. He’s been chairman during a period of both momentum and obstacles for the Lumbee Tribe in attaining full federal recognition, which could bring access to health care and grants.… Continue Reading

Federal government shutdown grinds into a second week, but quiet talks emerging

Federal government shutdown grinds into a second week, but quiet talks emerging

WASHINGTON (AP) — As the federal government shutdown enters a second week, there’s no discernible endgame in sight. No negotiations, at least publicly, are underway. But signs of political discomfort, and quiet talks, are emerging. The Republicans who have majority control in Congress believe they have the upper hand politically, as they fend off Democratic demands to quickly fund health insurance subsidies as part of any plan to end the shutdown. But Democrats are also dug in, convinced that Americans are on their side in the fight to prevent the looming health care price spikes. Meanwhile, certain lawmakers are discussing what it would take to reopen the government, starting with addressing the health care problem.… Continue Reading

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