<div id="readability-page-1"><div><div><p>After the shock of Friday, Oct. 10, when <strong>Donald Trump</strong> announced 100% tariffs on Chinese products, the president quickly softened his tone, assuring that trade relations &#34;will be fine.&#34;</p><p>That sweetener was well received by markets, helping Wall Street rebound early in the week.</p><h3>Powell's Dovish Tone Added Fuel To The Recovery</h3><p>The recovery was also fueled by stronger-than-expected bank earnings and by dovish remarks from Federal Reserve Chair <strong>Jerome Powell.</strong></p><p>Powell warned of mounting risks to employment, another indication that the central bank is likely to continue easing borrowing costs, bolstering bets on a rate cut later this month.</p><h3>Big Banks Shine, But Cracks Emerge in Smaller Lenders</h3><p>Major U.S. banks including <strong>JPMorgan Chase &amp; Co.</strong> (NYSE:JPM), <strong>Goldman Sachs Group Inc.</strong> (NYSE:GS), <strong>Bank of America Corp. </strong>(NYSE:BAC),<strong> Citigroup Inc.</strong> (NYSE:C), <strong>Wells Fargo &amp; Co.</strong> (NYSE:WFC) and<strong> Morgan Stanley</strong> (NYSE:MS) all beat analyst estimates, highlighting the resilience of the country's financial giants. </p><p>Yet cracks are beginning to show further down the ladder among smaller regional lenders.</p><h3>Credit Concerns Resurface With Zions And Western Alliance</h3><p>Markets were reminded of that fragility on Thursday, when a new wave of volatility hit the sector as several regional banks flagged credit problems. <strong>Zions Bancorporation</strong> (NASDAQ:ZION) disclosed it would record a $50 million charge-off in the third quarter, tied to two troubled commercial and industrial loans held by its California Bank &amp; Trust unit.</p><p>Meanwhile,<strong> Western Alliance Bancorp </strong>(NYSE:WAL) revealed it had filed a lawsuit against a borrower alleging fraud. Shares of both banks plunged by double digits on Thursday, while the broader regional banking industry suffered its worst single-day loss since April.</p><p>Adding to the unease, JPMorgan CEO <strong>Jamie Dimon</strong> warned of rising credit risk during the earnings call, citing the recent bankruptcies of Tricolor Holdings, a subprime auto lender, and First Brands, an auto parts manufacturer. &#34;When you see one cockroach, there's probably more,&#34; Dimon said.</p><h3>Gold Surges To All-Time Highs</h3><p>Gold continued its unstoppable rally, reaching new record highs of $4,350 per ounce — up more than 60% since the start of the year, marking its strongest performance since 1979. </p><p>Gold-mining stocks have soared by triple digits, and analysts suggest the rally may still be in its early stages.</p><h3>Detroit Auto Stocks Find Relief Ahead of Earnings</h3><p>For Michigan-based stocks, the week ended on a brighter note. Shares of <strong>General Motors Co</strong>. (NYSE:GM), <strong>Ford Motor Co. </strong>(NYSE:F) and <strong>Stellantis N.V.</strong> (NYSE:STLA) rebounded from last week's losses, up around 6%, 4.3%, and 6.2%, respectively, as improved trade and interest-rate sentiment lifted the auto sector.</p><p>Next week, GM and Ford will report quarterly earnings on Oct. 21 and 23, respectively.</p><ul> <li><strong>A Rare Holiday Spending Boom Is Coming—But Only For The Wealthy</strong></li> </ul><p><em>Image created using artificial intelligence via Midjourney.</em></p></div></div></div>

<p>Federal Reserve Chair Jerome Powell's dovish remarks and strong bank earnings have fueled market recovery, with expectations of a rate cut. Major banks like JPMorgan and Goldman Sachs reported better-than-expected results, but concerns arose for smaller lenders like Zions and Western Alliance, which faced credit issues. Gold prices surged to record highs, while Detroit auto stocks rebounded ahead of earnings reports. Overall, the market is experiencing volatility amid mixed signals in the banking sector and rising credit risks.</p>

- Following Donald Trump's announcement of 100% tariffs on Chinese products, markets rebounded as he reassured that trade relations "will be fine."  
- Strong bank earnings and dovish comments from Federal Reserve Chair Jerome Powell, indicating potential rate cuts, further fueled the recovery, although concerns emerged among smaller regional lenders facing credit issues.  
- Gold prices surged to record highs, while major auto stocks like General Motors and Ford saw gains ahead of their upcoming earnings reports.

Powell Hints At Rate Cut, Bank Credit Fears Emerge: This Week In Markets