(The opinions expressed here are those of the author, a

columnist for Reuters.)

By Alden Bentley

NEW YORK, Oct 14 (Reuters) -

Making sense of the forces driving global markets

By Alden Bentley, Editor in Charge, Americas Finance and

Markets

Jamie McGeever is enjoying some well-deserved time off, but

the Reuters markets team will still keep you up to date on

what's happening in markets. U.S. central bank chief Jerome

Powell steadied the market, which has been whipsawed in recent

sessions by a flare-up in U.S.-China trade tensions. I'd love to

hear from you, so please reach out to me with comments at

[email protected]

Today's Key Reads

Fed's Powell says economy may be on firmer footing, but job

market weak

US, China roll out tit-for-tat port fees, threatening more

turmoil at sea

US banking giants buoyed by dealmaking, but warn of asset

price bubbles

Wall Street's fear gauge climbs as US-China trade fears rise

Long Treasury yields to stay elevated as inflation, debt

pressures blunt Fed easing: Reuters poll

Today's Key Market Moves

STOCKS: The S&P 500 and Dow shook off early

losses, steadying on the back of comments by Federal Reserve

Chair Jerome Powell and strong earnings from JPMorgan Chase ( JPM )

, Goldman Sachs ( GS ), Citigroup ( C/PN ) and Wells Fargo ( WFC )

. The S&P closed slightly lower, but the Dow held

gains while the Nasdaq remained on the ropes all day

amid a pullback in tech shares.

SHARES/SECTORS: Wells Fargo ( WFC ) and Citi were up sharply while

JPMorgan ( JPM ) and Goldman shares were lower. Financials are the

top-performing S&P 500 sector on the day, followed closely by

Industrials, led by Caterpillar ( CAT ) after JPMorgan ( JPM ) raised

its price target. Market cap leader Nvidia ( NVDA ) was down

sharply and Information Technology was the only losing sector.

FX: The U.S. dollar eased. The safe-haven Swiss franc and

Japanese yen gained following renewed signs of strain in

U.S.-China trade relations, while the euro was supported after

the French government proposed to suspend landmark pension

reform.

BONDS: U.S. Treasury yields declined as concerns

about trade tensions between China and the U.S. dented risk

appetite, while Powell's comments suggested the Fed remained on

course to cut rates.

COMMODITIES: Oil prices tumbled after the International

Energy Agency warned of a huge supply glut in 2026. Gold

prices set a new record high on rising expectations of a U.S.

Federal Reserve rate cut this month and safe-haven demand on

trade tensions between the world's two largest economies.

CRYPTO: Bitcoin fell as low as $110,023.78 and was last

down 1.9%. The world's largest cryptocurrency hit a record high

above $126,000 on October 6.

Today's Key Talking Points

After major U.S. indexes fell again overnight, bulls

recaptured control following comments by Federal Reserve Chair

Jerome Powell that reassured investors that even without the

latest government data, indications were the economy remained on

a firm trajectory, while labor market conditions were not a deal

breaker for further easing. He also reduced concerns about tight

financial conditions by holding out the prospect of ending the

Fed's balance sheet run-off.

At the same time, solid results from some of the nation's

largest banks set up earnings season on a positive note.

The Cboe Volatility Index jumped to its highest in

nearly five months before paring gains, reflecting the whipsaw

stock market action since Friday on renewed concerns over a

U.S.-China trade conflict. For the moment tariffs seem to have

reclaimed top position as the market influence from Artificial

Intelligence. AI excitement helped lift the S&P 500 to record

highs last week and the benchmark is only about 1% away.

Wall Street started the session on the back foot after

Washington and Beijing moved to slap tit-for-tat additional port

fees on ocean shipping firms. The previous two sessions saw a

bungee-like drop and rebound after U.S. President Donald Trump

threatened, then seemed to downplay, punishing China over rare

earth export controls with 100% tariffs on Chinese goods.

Graphics

What could move markets tomorrow?

* Bank of America, Morgan Stanley, United Airlines report

earnings

* Numerous Fed officials speak, including recent Trump

appointment to the Board of Governors Stephen Miran

participating at a CNBC forum in Washington DC

Opinions expressed are those of the author. They do not reflect

the views of Reuters News, which, under the Trust Principles, is

committed to integrity, independence, and freedom from bias.

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