4:12pm: Markets end turbulent week higher
Wall Street ended a volatile week on a high note Friday, with major indexes posting strong gains despite ongoing tariff tensions between the US and China.
The Dow Jones Industrial Average rose 619 points (+1.6%) to 40,213, the S&P 500 climbed 95 points (+1.8%) to 5,363, and the Nasdaq Composite surged 337 points (+2.1%) to 16,724.
For the week, the S&P 500 and Dow notched their best performances since 2023, while the Nasdaq’s 7% gain marked its strongest week since 2022.
Market sentiment swung sharply as China announced a 125% tariff on US goods in retaliation to President Trump's earlier hike to an effective 145% on Chinese imports. Meanwhile, the 10-year Treasury yield climbed to 4.5%, the U.S. dollar index fell below 100, and gold hit a record high.
Despite mid-week selloffs, a historic 9% surge in the S&P 500 on Wednesday—the biggest one-day gain since October 2008—helped push stocks higher, capping the week with a mix of optimism and caution.
3:21pm: Friday's headlines
China said on Friday it would raise tariffs on US goods to 125%, retaliating against a fresh move by US President Donald Trump to increase duties on Chinese imports to 145%.
The Producer Price Index (PPI) declined 0.4% from the previous month, while the annual rate slowed to 2.7% from 3.2%, the Labor Department said.
JPMorgan Chase & Co CEO Jamie Dimon warned that the global economy is facing "considerable turbulence," including the prospect of a recession.
Gold was trading at $3,219.93 an ounce on Friday, driven by renewed investor appetite for safe-haven assets amid market turbulence triggered by US trade policy.
2:06pm: Data next week
Key economic data next week will offer a snapshot of consumer, industrial, and housing sector trends.
March retail sales, due Wednesday, are expected to rise 1.4%—boosted by auto purchases ahead of tariff hikes—though underlying spending remains tepid amid falling confidence and inflation concerns.
Industrial production, also out Wednesday, is forecast to dip 0.2% after a strong February, as trade uncertainty and high capital costs continue to weigh on manufacturing.
On Thursday, housing starts are projected to retreat slightly to an annualized pace of 1.416 million, reflecting persistent challenges from rising construction costs and subdued builder sentiment.
1:20pm: Trade War 2.0
Rising tensions between the US and China following "Liberation Day" have materially worsened China's economic outlook, prompting a shift to the bank's “protracted trade war” downside scenario, according to Wells Fargo.
“We now believe the outlook for China's economy and currency has shifted away from our original base case and into our ‘protracted trade war’ downside scenario,” analysts wrote in a note.
Wells Fargo expects the situation to escalate through non-tariff trade barriers but maintained its view that Chinese authorities will not pursue a currency devaluation during what it calls "Trade War 2.0."
12:15pm: Nasdaq leads gains
Stocks continued volatile trading on Friday as investors grappled with mixed economic signals and geopolitical tensions.
Despite early market swings, major indices moved into positive territory by midday. The Dow rose 0.5%, recovering from earlier fluctuations as traders digested fresh economic data and trade developments. The S&P 500 gained 0.6%, bolstered by strength in the consumer discretionary and technology sectors, while the Nasdaq led the rally with a 0.8% increase, driven by high-growth tech stocks.
A sharp drop in consumer sentiment weighed on investor confidence, raising concerns about the durability of consumer spending—a key driver of the US economy. Meanwhile, rising Treasury yields, with the 10-year benchmark climbing, signaled investor caution amid ongoing inflationary pressures and speculation about future Federal Reserve rate moves.
Uncertainty surrounding the US-China trade war also loomed large, as investors monitored the latest round of tariff announcements.
11:37am: Investors are tired: analyst
Investor fatigue has pushed volatility lower ahead of the weekend despite the US and China remaining locked in a trade war, according to Axel Rudolph, Senior Technical Analyst at online trading platform IG.
"China's reply to US President Trump's tariff increase to 145% was to hike its levy on all US goods from 84% to 125%, starting tomorrow, stating that the numbers game had become 'a joke'," Rudolph wrote.
"After a turbulent week, the oil price stabilised as well and was little changed on the day.
"Bar gold, investors aren't flocking to traditional safe haven assets such as the US dollar or Treasuries as they no longer trust the US government."
11:01am: Consumer sentiment slumps
US consumer sentiment fell sharply in early April as households grew increasingly worried that a wave of new tariffs could drive inflation higher, a University of Michigan survey showed Friday.
The sentiment index dropped to 50.8, approaching the record low hit in mid-2022, as both current conditions and expectations gauges weakened.
Roughly two-thirds of respondents spontaneously mentioned tariffs in interviews, up from about 40% in February and March, the survey said.
"The big takeaway from these data is households are feeling uneasy around tariffs," economists at Wells Fargo wrote in a note. "Consumers are growing more and more pessimistic."
10:12am: PPI suprises
US producer prices fell more than expected in March, offering a sign that inflationary pressures may be easing.
The Producer Price Index (PPI) declined 0.4% from the previous month, while the annual rate slowed to 2.7% from 3.2%, the Labor Department said on Friday.
A 4% drop in energy prices drove the monthly decline, mirroring weakness seen in consumer inflation data.
Analysts highlighted the unpredictability of policy as a major source of risk. “The big caveat of course is that this could all turn on a dime with the next social media post,” Comerica's Bill Adams said.
9:50am: China escalates tariffs
US stock markets opened mixed on Friday as investors weighed China’s latest retaliatory tariff hike alongside its signals of restraint in further escalating the trade war.
The major indices posted modest moves, with the Dow Jones Industrial Average edging up 19 points to 39,612, the S&P 500 adding 4 points to reach 5,272, and the Nasdaq Composite gaining 58 points, or 0.4%, to close at 16,446.
China announced it will raise tariffs on US imports to 125% from a previously planned 84%, effective Saturday. While the move directly responds to increased US tariffs, Beijing also indicated a willingness to pause further escalation, offering a possible opening for de-escalation.
On the corporate front, Wall Street banks kicked off the first-quarter earnings season, with reports from JPMorgan, Wells Fargo, and BlackRock showing modest stock gains as investors searched for signs of economic stress tied to tariff-driven disruptions. JPMorgan CEO Jamie Dimon described the US economic environment as one of “extreme turbulence.”
Beyond equities, market attention shifted to Treasuries and commodities amid broader volatility. The benchmark 10-year Treasury yield rose to 4.5%, extending its climb, while the dollar index fell to its lowest level since 2022. Gold, meanwhile, surged to another record high, reinforcing its appeal as a safe-haven asset during global uncertainty.
7.45am: Nasdaq and S&P to give back some gains
US stocks are expected to open modesly higher, recovering some of Thursday's heavy losses as the initial euphoria over President Donald Trump pausing his tariff increase on most countries proved short-lived.
Dow Jones futures were pointing to a gain of around 0.12%, while S&P 500 futures and those for the Nasdaq indicated advances of 0.20% and 0.24% respectively when the market opened.
Yesterday, the Dow fell 1,015 points, or 2.5%, to close at 39,594, the S&P 500 dropped 189 points, or 3.5%, to finish at 5,268, and the Nasdaq shed 738 points, or 4.3%, settling at 16,387.
“Wednesday’s sharp gains turned out to be nothing more than a brief relief rally, as investors headed to the door once more in search of haven assets," commented Richard Hunter, head of markets at interactive investor.
"The latest lurch down followed US confirmation that the cumulative tariff rate on China was now 145%, leading to more widespread selling of Treasuries with the concomitant rise in yields, such as the 10-year note which jumped to 4.4% and is on course for its largest weekly rise since the turn of the century.
"There is also some speculation that the US moves have resulted in some unintended consequences, with the possibility that a proportion of the selling is actually coming from China, who are moving out of their Treasury exposure," Hunter added.