Wall Street ended mixed Tuesday as investors digested mostly positive quarterly results from big U.S. banks, comments from Federal Reserve Chair Jerome Powell and an ongoing U.S.-China trade war. A slew of major lenders reported solid results on strong performance in the investment banking segment, helping the S&P 500 banking index rally.

Wells Fargo surged and was on track for its best day in six months and Citigroup also jumped after both lenders beat estimates for third-quarter profit. JPMorgan Chase raised its full-year forecast for net interest income and Goldman Sachs beat Wall Street expectations for quarterly profit.

However, shares of JPMorgan and Goldman Sachs, which have outperformed most rivals this year, both fell. BlackRock's assets under management hit a record $13.46 trillion, lifting its shares.

The S&P 500 moved lower after U.S. President Donald Trump said Washington was considering terminating some trade ties with China, including in relation to cooking oil.

That came after the two countries began charging additional port fees on ocean shipping firms that move everything from holiday toys to crude oil.

Global equities were shaken on Friday after Trump threatened 100% tariffs on Chinese goods after Beijing imposed controls on the export of rare earth minerals, although he softened his tone over the weekend.

"The market is really struggling with where this shakes out," said Ross Mayfield, an investment strategist at Baird Private Wealth Management. "If the (Trump) administration feels like ramping up these tensions again, the market looks pretty expensive right now for that sort of fight, especially if 100% tariffs and other measures are back on the board."

The U.S. labor market remained mired in its low-hiring, low-firing doldrums through September, though the economy overall "may be on a somewhat firmer trajectory than expected," Powell said in remarks prepared for delivery at a National Association for Business Economics conference.

According to preliminary data, the S&P 500 lost 9.73 points, or 0.15%, to end at 6,644.38 points, while the Nasdaq Composite lost 175.76 points, or 0.77%, to 22,518.84. The Dow Jones Industrial Average rose 205.41 points, or 0.45%, to 46,272.99. Walmart rose after the retailer said it was partnering with OpenAI to enable customers and Sam's Club members to shop directly within ChatGPT.

Gains in industrial stocks supported the Dow. Caterpillar jumped after JP Morgan raised its price target on the stock. The International Monetary Fund marginally lifted its 2025 global growth forecast, as tariff shocks and financial conditions have proven more benign than expected, while warning that a renewed U.S.-China trade war could slow output significantly.