Big U.S. banks enjoy strong quarter – easing trade concerns

U.S. Treasury Secretary Scott Bessent told CNBC in an exclusive interview on Wednesday that China is using its advantages in the rare earths industry to drive down prices and drive out foreign competitors. He characterized the country as a “non-market economy.”

In response, the Trump administration plans to “activate industrial policy” and set price floors in various industries. A price floor is a lower limit that a supplier can charge for a good or service. These are usually set above market rates and are essentially a form of government price control.

meanwhile, bank of america and morgan stanley reported massive second-quarter results that far exceeded analysts’ expectations. These banks join other large U.S. banks such as JPMorgan Chase & Co. and Goldman Sachs Co., which had a turbulent quarter with strong deal closings and high stock market prices.

And even as President Donald Trump continues to take a tough stance on China on trade, traders don’t seem ready to let go of stocks. Wednesday in the U.S. S&P500 and Nasdaq Composite roses and russell 2000 A new record was set. After all, the Federal Reserve’s Beige Book says earnings reports show the economy is not yet in a downturn, even though businesses are already seeing higher costs from tariffs.

Whether traders continue to push stocks to new highs will depend in part on next week’s results from major technology companies such as Tesla and Intel, as trade relations with China become volatile.