03:41 PM EDT, 10/17/2025 (MT Newswires) -- US equity indexes rose ahead of the close on Friday as regional banks' quarterly results helped tamp down credit risk concerns, while President Donald Trump eased China trade tensions.

The Nasdaq Composite rose 0.7% to 22,726.1, with the S&P 500 up 0.7% to 6,675.2 and the Dow Jones Industrial Average 0.7% higher at 46,296.5. Consumer staples, financials, and energy were among the gainers intraday, while materials and utilities were the sole decliners.

The SPDR S&P Regional Banking ETF (KRE) rebounded 1.7% as regional banks reported strong quarterly results. Truist Financial ( TFC ) reported Q3 earnings that beat expectations; Huntington Bancshares ( HBAN ) reported Q3 earnings and revenue that topped analyst forecasts; and Fifth Third Bancorp ( FITB ) posted better-than-expected Q3 results. Shares of Truist jumped 3.4%, and the other two lenders also traded higher by more than 1% each.

Baird upgraded Zions Bancorporation's (ZION) shares to outperform from neutral and set a $65 price target. The ratings upgrade called into question Thursday's market reaction to the lender's disclosure, pushing it up 5.6% to $49.54 by Friday afternoon.

Zions on Thursday disclosed a $50 million charge-off amid a review that uncovered "apparent misrepresentations and contractual defaults" regarding two commercial and industrial loans. Western Alliance Bancorp ( WAL ) also said on the same day it launched a lawsuit against Cantor Group V in August for alleged fraud, triggering a sell-off in the financial sector in the previous trading session.

On the trade front, US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng were scheduled to speak by phone Friday to discuss the ongoing trade talks between the two global economic giants, CNBC reported, citing a senior Trump administration official.

Meanwhile, President Donald Trump told Fox Business that the imposition of a 100% tariff on Chinese goods in response to Beijing's export controls on rare earth would not be sustainable, while confirming plans to meet his Chinese counterpart, Xi Jinping, in South Korea at the end of this month.

The CBOE Volatility Index, also known as the fear gauge, dropped 6.1% to 23.74.

Most US Treasury yields rose, with the two-year yield up 3.1 basis points to 3.46% and the 10-year rate 2.9 basis points higher at 4.01%.