Summary: The markets are snapping back after Trump walked back tariff threats, crypto made a sharp weekend recovery, and earnings season is about to set the tone for Q4.
The 2nd Trump dip… and the reversal
Friday's escalation of China tariffs triggered the largest single-day drawdown since April, with the S&P 500 falling nearly 3%. But over the weekend, Trump completely de-escalated the situation, reversing course and saying "all will be fine."
Futures opened with a big gap up as traders unwind defensive positioning. It's the second Trump dip of the year… and once again, markets treated it as a buying opportunity rather than a macro shift.
Bitcoin and Ethereum bounce back
Crypto snapped back strong over the weekend. Bitcoin (BTC) dropped as low as $102,000, briefly breaking the 20MA, before reclaiming it in a sharp reversal. Ethereum (ETH) also dipped to $3,510 but quickly rebounded, now trading well above $4,000.
Both moves signal resilience across digital assets… the 200MA holds remain a bullish signal as traders rotate back into risk following the macro pullback.
Bank earnings season begins
Earnings season kicks off this week with the big banks. JPMorgan (JPM), Citigroup (C), Wells Fargo (WFC), and Bank of America (BAC) are all set to report.
Consensus estimates call for 5-7% YoY profit growth, driven by steady net interest income and easing credit loss provisions.
Analysts will be watching loan demand, consumer spending trends, and deposit costs for signs of economic cooling or resilience.
Given the uncertainty around the shutdown and data delays, these earnings will be the first real pulse check on the U.S. economy heading into Q4.
Thanks for reading!
**
Welcome to the WOLF Financial Newsletter.
Join over 20,000 savvy investors building wealth and mastering advanced investing strategies live on Twitter Spaces. Subscribe below to be part of the action:
**
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
