Stocks Rise on Strong Q3 Results:
Stocks pushed higher last week, buoyed by strong third-quarter earnings reports from several major banks.
The S&P 500 Index gained 1.70%, while the Nasdaq Composite Index rose 2.14%. The Dow Jones Industrial Average advanced 1.56%. The MSCI EAFE Index, which tracks developed overseas stock markets, added 0.74%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 10/10/25 = 0)
A Bumpy Week
Stocks rose to start the week after the White House shifted tone over the weekend on trade relations with China. Gains were broad-based—4 out of 5 stocks in the S&P 500 rose—with the index posting its best day since May 27.3
Overnight, the specter of a revived trade war with China reemerged after the country placed sanctions on U.S. subsidiaries of South Korean shipbuilders in an apparent effort to increase its control over global shipping. Stocks opened sharply lower the next morning, and then quickly staged an impressive rebound—helped by mostly positive quarterly earnings results from a handful of big money center banks.4
Stocks rose again midweek as better-than-expected Q3 corporate results from the biggest banks continued to roll in, overpowering negative sentiment around lingering trade concerns. As the week wrapped, bank stocks and all three broad market averages pushed through jitters to end in the green.5,6,7
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
Bank Stock Paradox
While trade tensions with China dominated the attention during the week, some bank news also captured investor interest.
Last week, several money center banks reported expectation-beating Q3 results, underscoring the narrative of a healthy economy and robust consumer spending.
But there was a flip side to the banking sector: a smaller regional bank reported a $50 million credit loss from two commercial loans. The loss also hit larger banks with a stake in the loss. The news rattled the markets. For investors, it evoked memories of two regional bank failures in 2023, raised questions about whether this was a broader systemic issue, and put pressure on bank stocks, both big and small.8
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1WSJ.com, October 17, 2025
2Investing.com, October 17, 2025
3CNBC.com, October 13, 2025
4CNBC.com, October 14, 2025
5WSJ.com, October 15, 2025
6CNBC.com, October 16, 2025
7CNBC.com, October 17, 2025
8WSJ.com, October 17, 2025
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