Stocks Climb as Trump Soothes Wall Street Nerves

Oct 17, 2025

Guest

Dana Telsey

Guest

Katie Hubbard

Guest

Winnie Cisar

Winnie Cisar, Global Head of Strategy at CreditSights, dives into the vulnerabilities in the credit market and the implications of private credit growth. Katie Hubbard, EVP at Walton Global, shares insights on the Southern California real estate slump contrasted with Midwestern resilience, while also discussing the rising ARM mortgage trend. Dana Telsey, CEO of Telsey Advisory Group, highlights consumer resilience driven by product innovation and the luxury market's stabilization amidst tariff concerns. Together, they explore the evolving landscape of finance and retail.

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INSIGHT

Private Credit Obscures Market Health

Private credit growth makes aggregate credit health harder to assess due to opacity and rapid capital inflows.
Tight public-credit spreads mean downside risk is skewed even without a systemic event.

INSIGHT

Tight Spreads Raise Downside Skew

Investment-grade and high-yield spreads are unusually tight, offering low compensation for credit risk.
That imbalance increases the chance of losses even without a broad systemic crisis.

ADVICE

Monitor Private Markets, Don't Assume Liquidity

Don't assume private markets will remain an ample liquidity source without issues going forward.
Monitor deployment pace and lender fragmentation to judge private-credit fragility.

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A jittery week on Wall Street ended on a positive note for stocks as President Donald Trump’s remarks soothed anxiety around trade tensions while regional banks rebounded. Bonds, gold and silver fell.

The bounce in equities sent the S&P 500 to its best week since August, with Trump expressing optimism that talks with Chinese officials could yield an agreement to defuse the tariff spat between the world’s two biggest economies. A batch of solid results from various regional lenders lifted the industry after a rout triggered by concern over credit quality in the economy.

The White House signaled efforts to calm fears of a full-blown trade war that could have a seismic effect on the global economy. “I think we’re doing very well. I think we’re getting along with China,” Trump said. He also indicated that he believed his planned meeting with President Xi Jinping this month would go ahead.

The S&P 500 added 0.5%. A closely watched exchange-traded fund tracking regional banks climbed 1.6%. Zions Bancorp and Western Alliance Bancorp - which had led the recent industry selloff - rallied at least 3.1%. Oracle Corp. sank about 7% on concerns about fulfilling AI cloud demand.

Treasury two-year yields rose from the lowest since 2022. The dollar was little changed at the end of its worst week since August.

Today's show features:
Winnie Cisar, Global Head of Strategy at CreditSights, on potential cracks in the US credit market
Katie Hubbard, Executive Vice President of Capital Markets at Walton Global, on the US real estate market
Dana Telsey, Founder, CEO and Chief Research Officer of Telsey Advisory Group, on the health of the American consumer and the retail sector
Angela Stent, Senior Fellow at the American Enterprise Institute and Author of “Putin's World,” on President Donald Trump’s meeting with Ukrainian President Volodymyr Zelenskiy and planned summit with Russian President Vladimir Putin

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