What We Learned This Week

 More EV Write-Downs: GM announced it will take a $1.6 billion write-down tied to its electric vehicle business when it reports earnings next week, following Ford’s earlier disclosure of a roughly $1.9 billion hit from its EV division this year. Analysts have been expecting these kinds of adjustments for some time as EV adoption has slowed and consumer enthusiasm has cooled. Major automakers rushed to align with aggressive government policies that included steep purchase incentives and strict emissions targets, pouring tens of billions into EV-specific plants and technology. But the environment has shifted. Consumer uptake has been slower than projected, costs remain high, and much of the political and regulatory urgency behind the transition has softened.

EVs are still here to stay, but their role in automakers’ strategies is being recalibrated. What once looked like an all-in future now appears more like a balanced portfolio approach—EVs as a key product line rather than the entire business model. That adjustment comes with financial pain in the near term, but it’s a necessary reset. The companies willing to pull back, reassess, and find the right mix of electric and internal combustion offerings will likely emerge stronger. Flexibility, not absolutism, seems to be the winning formula for the next chapter of the auto industry.

U.S./China Trade Tensions Back in the Headlines: U.S./China tensions are again rising, this time centered on rare earth metals. These materials are critical to modern technology, powering everything from smartphones to fighter jets, and China controls roughly 70% of global supply. Last week, Beijing announced sweeping new restrictions requiring government permits for nearly all exports of rare earths or products containing them—and indicated that exports tied to military applications would likely be denied. The move sparked concern worldwide, given how dependent global manufacturing remains on Chinese supply. In response, the Trump administration warned of retaliatory tariffs and other measures if China doesn’t reconsider.

For its part, the U.S. has been trying to boost domestic production of rare earths, but that process takes years. Markets reacted with volatility, particularly in tech stocks, which are most exposed to supply chain disruptions and trade retaliation. Still, investors have seen this movie before (sharp rhetoric, limited follow-through), and the overall market reaction has been more jittery than panicked. It’s also possible this is posturing ahead of the planned Trump–Xi meeting next month. The takeaway: not the moment to overreact, but a reminder of how fragile and politicized global supply chains have become, and how quickly trade can turn into a weapon.

Good Signs from the Banks: Earnings season kicked off this week with strong showings from the nation’s largest banks, and overall sentiment was broadly positive. JPMorgan, Wells Fargo, Citi, Goldman Sachs, and Morgan Stanley all reported results that topped expectations, reflecting steady performance across core businesses. The biggest bright spot was investment banking, where deal and IPO activity showed clear signs of life after a long drought. Trading and wealth management divisions also posted solid numbers, suggesting market activity and client engagement remain healthy.

Perhaps most importantly, credit quality held up well. Consumer loan performance remains strong, with borrowers still spending and making payments on time despite mounting concerns over a cooling labor market and rising delinquencies in certain categories. It’s the metric investors are watching most closely, and for now, it’s holding. All in all, the quarter paints a picture of resilience across the banking sector, an encouraging sign heading into year-end and a reminder that the broader financial system remains on stable footing.