US stocks jump and the bond market swings to cap Wall Street바카라 게임 웹사이트s chaotic and historic week
U.S. stocks jumped Friday in another manic day on Wall Street, while the falling value of the U.S. dollar and other swings in financial markets suggested fear is still high about escalations in President Donald Trump바카라 게임 웹사이트s trade war with China.
The S&P 500 rallied 1.8%, after veering repeatedly between gains and losses, to cap a chaotic and historic week full of monstrous swings. The Dow Jones Industrial Average went from an early loss of nearly 340 points to a gain of 810 before settling at a rise of 619 points, or 1.6%, while the Nasdaq composite jumped 2.1%.
Stocks kicked higher as pressure eased a bit from within the U.S. bond market. It바카라 게임 웹사이트s typically the more boring corner of Wall Street, but it바카라 게임 웹사이트s been flashing serious enough signals of worry this week that it바카라 게임 웹사이트s demanded investors' and Trump바카라 게임 웹사이트s attention.
The yield on the 10-year Treasury topped 4.58% in the morning, up from 4.01% a week ago. That바카라 게임 웹사이트s a major move for a market that typically measures things in hundredths of a percentage point. Such jumps can drive up rates for mortgages and other loans going to U.S. households and businesses, which would slow the economy, and they can indicate stress in the financial system.
But Treasury yields eased back as the afternoon progressed, and the 10-year yield regressed to 4.48%. That바카라 게임 웹사이트s still higher than the day before, but not by as eye-wateringly much.
Susan Collins, president of the Federal Reserve Bank of Boston, told the Financial Times that the Fed 바카라 게임 웹사이트would absolutely be prepared바카라 게임 웹사이트 if markets become disorderly and 바카라 게임 웹사이트does have tools to address concerns about market functioning or liquidity should they arise.바카라 게임 웹사이트
Several reasons could be behind this week바카라 게임 웹사이트s jump in U.S. Treasury yields, which is unusual because yields typically fall when fear is high.
Investors outside the United States could be selling their U.S. bonds because of the trade war, and hedge funds could be selling whatever바카라 게임 웹사이트s available in order to raise cash to cover other losses. More worryingly, doubts may be rising about the United States바카라 게임 웹사이트 reputation as the world바카라 게임 웹사이트s safest place to keep cash because of Trump바카라 게임 웹사이트s frenetic, on-and-off tariff actions.
The value of the U.S. dollar also fell again Friday against everything from the euro to the Japanese yen to the Canadian dollar.
Gold, however, lived up to its reputation as a safer haven for investors and saw its price rise to another record.
The shaky trading came after China announced Friday that it was boosting its tariffs on U.S. products to 125% in the latest tit-for-tat increase following Trump바카라 게임 웹사이트s escalations on imports from China.
The repeated U.S. tariff increases 바카라 게임 웹사이트on China has become a numbers game, which has no practical economic significance, and will become a joke in the history of the world economy,바카라 게임 웹사이트 a Finance Ministry spokesman said in a statement announcing the new tariffs. 바카라 게임 웹사이트However, if the US insists on continuing to substantially infringe on China바카라 게임 웹사이트s interests, China will resolutely counter and fight to the end.바카라 게임 웹사이트
Rising tensions between the world바카라 게임 웹사이트s two largest economies could cause widespread damage and a possible global recession, even after Trump recently announced a 90-day pause on some of his tariffs for other countries, except for China.
All the uncertainty caused by the trade war is eroding confidence among U.S. shoppers, which could affect their spending and translate into damage for the economy, which came into this year running at a solid rate.
Video below: Economist provides insight on stock market
A preliminary survey by the University of Michigan suggested sentiment among U.S. consumers is falling even more sharply than economists expected. 바카라 게임 웹사이트This decline was, like the last month바카라 게임 웹사이트s, pervasive and unanimous across age, income, education, geographic region, and political affiliation,바카라 게임 웹사이트 according to the survey바카라 게임 웹사이트s director, Joanne Hsu.
바카라 게임 웹사이트We remain in the early innings of this global trade regime change, and while the 90-day pause on reciprocal tariffs temporarily reversed the market selloff, it does prolong uncertainty,바카라 게임 웹사이트 according to Darrell Cronk, president of Wells Fargo Investment Institute.
That바카라 게임 웹사이트s why many on Wall Street are prepared for more swings to hit markets. This past week began with huge swings for U.S. stocks within each day as rumors swirled and then got batted down about a possible 90-day pause on Trump바카라 게임 웹사이트s tariffs. Then the U.S. stock market surged to one of its best days in history after Trump did deliver a pause, before swinging to end the week.
All told, the S&P 500 rose 95.31 points Friday to 5,363.36. The Dow Jones Industrial Average climbed 619.05 to 40,212.71, and the Nasdaq composite climbed 337.14 to 16,724.46.
Friday바카라 게임 웹사이트s swings came after a set of stronger-than-expected profit reports from some of the biggest U.S. banks, which traditionally help kick off each earnings reporting season.
JPMorgan Chase, Morgan Stanley and Wells Fargo all reported stronger profit for the first three months of the year than analysts expected. JPMorgan Chase rose 4%, Morgan Stanley added 1.4% and Wells Fargo lost 1%.
Another report on inflation also came in better than expected. That could give the Federal Reserve more leeway to cut interest rates if it feels the need to support the economy.
But Friday바카라 게임 웹사이트s report on inflation at the wholesale level was backward looking, measuring March바카라 게임 웹사이트s price levels. The worry is that inflation will rise in coming months as Trump바카라 게임 웹사이트s tariffs make their way through the economy. And that could tie the Fed바카라 게임 웹사이트s hands.
The University of Michigan바카라 게임 웹사이트s survey suggested U.S. consumers are bracing for inflation of 6.7% in the year ahead. That바카라 게임 웹사이트s the highest forecast since 1981, and such expectations can create a feedback loop that pushes inflation higher.
In stock markets abroad, indexes were scattershot around the world. Germany바카라 게임 웹사이트s DAX lost 0.9%, but the FTSE 100 in London added 0.6% as the government reported the economy, the world바카라 게임 웹사이트s sixth largest, enjoyed a growth spurt in February. Japan바카라 게임 웹사이트s Nikkei 225 dropped 3%, while Hong Kong바카라 게임 웹사이트s Hang Seng climbed 1.1%.
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AP writers Jiang Junzhe and Elaine Kurtenbach contributed.