NEWS

U.S. stocks rose during trading on Wednesday, October 15, as a series of better-than-expected corporate earnings outweighed concerns about growing trade tensions between the United States and China.

The Dow Jones Industrial Average rose 374 points, or 0.8%. The S&P 500 rose 1.2%, and the Nasdaq Composite climbed 1.4%.

Bank of America shares jumped 4% after the company reported third-quarter earnings and revenue that beat analysts' estimates, driven by strong investment banking revenue. Morgan Stanley also reported better-than-expected earnings, and its shares rose 6%.

The two banks' earnings reports follow a series of better-than-expected reports from Goldman Sachs and Wells Fargo, among others, on Tuesday.

However, Wall Street veteran Art Hogan believes the market will likely move sideways from now on, oscillating near its all-time highs as long as uncertainty about the trade war persists.

The U.S. government shutdown is also a drag on the market, according to B. Riley Wealth Management's chief market strategist.

He added: "Earnings season may be better than expected overall, with the usual share of companies reporting results and raising their forecasts, but I don't think that will be a significant boost to the markets until we get closer to reopening the government and perhaps gain more clarity on our trade relationship with China."

Trade concerns led to a turbulent session on Tuesday. After volatility during the session, the S&P 500 attempted to rebound but ultimately closed lower after U.S. President Donald Trump threatened China with a ban on cooking oil late in the session in retaliation for Beijing's failure to purchase American soybeans.

The Nasdaq also fell during Tuesday's session but closed well off its lows. The Dow Jones Industrial Average bucked the trend, rising just over 200 points, despite falling 1.3% in early trading on Tuesday.

Tuesday's developments marked the latest escalation in trade tensions between the United States and China. On Monday evening, China imposed new sanctions on five U.S. subsidiaries of South Korean shipbuilder Hanwha Ocean.

This followed Trump's threats last Friday to impose additional 100% tariffs on any goods imported from China after Beijing imposed strict controls on rare earth mineral exports.

U.S. Trade Representative Jameson Greer told CNBC on Tuesday that the tariffs Trump mentioned could be implemented on November 1 or earlier, depending on China's next move.