Traders work on the floor of the New York Stock Exchange (NYSE) on October 13, 2025, in New York City. <\/p>\n
Spencer Platt | Getty Images<\/p>\n
Stocks rose Wednesday as a slate of stronger-than-anticipated earnings overshadowed worries about growing trade tensions with China.<\/p>\n
The Dow Jones Industrial Average<\/a> climbed 96 points, or 0.2%. The S&P 500<\/a> gained 0.5%, while the Nasdaq Composite<\/a> advanced 0.7%.<\/p>\n Bank of America shares jumped 4% after the company posted third-quarter earnings and revenue<\/a> that beat analyst expectations, thanks to strong investment banking revenue. Morgan Stanley also posted better-than-expected earnings<\/a>, sending its shares higher by 5%.<\/p>\n Those reports come after a spate of better-than-expected reports from Goldman Sachs and Wells Fargo, among others, on Tuesday.<\/p>\n “It appears as if the banks have hit the ball out of the park, exceeding both earnings and revenue expectations,” Sam Stovall Chief Investment Strategist at CFRA Research, told CNBC. “That’s an indication that the economy remains strong and, coupled with the likelihood that the Fed will cut rates again at the end of this month, [it] is bolstering investor optimism.”<\/p>\n The period of renewed investor optimism comes after a tumultuous session on Tuesday. The S&P 500 attempted a comeback, but ultimately closed lower after President Donald Trump threatened China with a cooking oil embargo<\/a> late in the session as retaliation for Beijing not buying U.S. soybeans. On Tuesday, the benchmark was up as much as 0.4% and down as much as 1.5%.<\/p>\n The Nasdaq fell but closed well off the lows. The Dow bucked the trend to rise just over 200 points, although it had fallen as much 1.3% on Tuesday morning.<\/p>\n