US stocks closed higher on Friday, October 17, as easing trade tensions and strong consumer sentiment lifted Wall Street. The Dow Jones Industrial Average gained 0.5% to close at 46,190.61, while the S&P 500 rose 0.5% to 6,664.01 and the Nasdaq Composite climbed 0.5% to 22,679.98.
Financial and consumer stocks led the advance, with banking shares rebounding after Thursday’s sell-off sparked by concerns over loan quality. Analysts said signs that the turmoil was “isolated rather than systemic” helped restore confidence.
Markets also welcomed President Donald Trump’s comments that his proposed 100% tariffs on Chinese imports were “not sustainable,” easing fears of a deeper trade war. The remark boosted risk appetite, sending the CBOE Volatility Index (VIX) down nearly 18% to 20.78.
Consumer-facing names like Estee Lauder (+4.1%) and Dollar Tree (+2.6%) rallied on expectations of improved spending power.
For the week, the Nasdaq gained 2.1%, the S&P 500 added 1.7%, and the Dow rose 1.6%—their best stretch in a month. Analysts said the combination of softer rhetoric on tariffs, stable inflation data, and resilient demand reinforced optimism that global supply chains and economic growth are stabilizing.
