Stock Market Volatility Jumps to 5-Month High as Trump's Trade War and AI Valuation Worries Return

Barry Adams
15 Oct, 2025
New York City

Stocks on Wall Street advanced on Wednesday following the previous day's volatile session amid escalating trade tensions between the U.S. and China. 

The S&P 500 index increased 0.4%, the Nasdaq Composite advanced 0.6%, and gold and silver notched new record highs. 

China imposed port fees on U.S. ships arriving at their destinations in retaliation to the U.S. president's threat to impose additional 100% tariffs on Chinese goods. 

The fears of tit-for-tat tariff escalation led to tumultuous trading on Tuesday, and investors sought safe haven in precious metals and drove up high-tech stocks. 

Investors remained focused on the latest earnings releases, and Bank of America and Morgan Stanley reported better-than-expected quarterly results. 

Goldman Sachs and JPMorgan Chase reported strong quarterly results on Monday. 

PNC Bank, Regions Financial, American Express, and Charles Schwab are scheduled to release their results later in the week. 

 

U.S. Stock Movers

Bank of America Corp. gained 2.5% to $52.52 after reporting its third-quarter revenue and earnings, which exceeded market expectations. 

Revenue rose 11% to $28.1 billion, net income advanced to $8.5 billion from $6.9 billion, and diluted earnings per share increased to $1.06 from 89 cents a year ago. 

Provisions for credit losses edged down to $1.3 billion, compared to $1.5 billion in the quarter a year ago and $1.6 billion in the second quarter. 

Morgan Stanley jumped 3.5% to $160.88, and the investment bank and asset manager reported a rise in revenue and earnings in the third quarter. 

Revenue rose 18% to $18.2 billion from $15.4 billion, net income advanced 45% to $4.6 billion from $3.2 billion, and diluted earnings per share jumped to $2.80 from $1.88 a year ago. 

Net new asset flow in its wealth management unit jumped to $81 billion and generated a pre-tax margin of 30%. 

Total client assets across the wealth and investment management platform increased to $8.9 trillion. 

ASML Holding jumped 4% to $1,025.37, and the Dutch semiconductor equipment maker said the current fiscal year's revenues are likely to surpass those from fiscal 2025.