Tariff War as Wild Week for Stock, Bond and Dollar

The US financial markets wrapped one of their most unstable weeks as Kovid -19 epidemic, as President Donald Trump inspired vengeance from China while playing rapidly and fiercely with his tariff scheme.

When the dust accumulated, the three major benchmarks on Friday recorded a profit, which was added to the weekly advance.

Dow Jones Industrial Average increased by 5% for the week, S&P 500 about 6% and Nasdaq Composite 7%.

Nevertheless, the three major indices are negative for the year.

Volume and instability

The final number did not come without nail-biting. CBOE’s volatility index, also known as Wall Street’s Fear Gauge, hit a five -year high as Dow saw swings of over 2,000 points during several sessions.

Between the stock cell-offs, don’t panic, experts say

Dow scored 2,692 marks on WednesdayThe biggest one -day point growth in history. On this day, the total trading volume $ 30 trillion, at least since May 2019, as the Dow Jones Market Data Group has been tracked. This is the same day when Trump, in a stunning axis, stops tariffs on some countries.

Blackrock CEO Larry Fink On Friday, the market flexibility was mentioned on a conference call with investors, and said that he remains optimistic about capital markets.

“We don’t see a systemic risk that there is not an epidemic,” Fink said. “The financial system is shown safe and sound, and flexibility. Markets are more traded, greater quantity with liquidity than any other time. With all this instability, the markets have proved quite successful and work quite well.” Obviously, there is uncertainty of the proximity. ,

Tariff progress

While uncertainty around the tariff tested the investor resolution, the White House stressed that the deals were being mentioned by the American trade representative Jamisson Greer.

The White House press secretary Karolin Lewit said on Friday, “He confirmed that more than 15 offers are already on the table, which is only notable in only a few days. And as I said earlier, we have heard from more than 75 countries around the world.”

Bond Market: 10-Year Treasury Yield 4.5%

Government bonds are brightening a more disturbing signal as investors withdraw money on the concerns of an emerging recession. When the yield increases, prices fall. 10 -year -old treasury, borrowing costs such as a benchmark for mortgage and personal loan, hit the most 4.5%since February. The weekly 50-plus basis point jump was the largest in over 40 years.

Treasure Secretary Scott Besant This trend was asked on Wednesday.

“There are some very big, leveraged players who are experiencing losses who are doing to take advantage,” he told Maria Bartiromo on “Morning with Maria” during an interview. “I believe nothing is systemic about this. I think it is an uncomfortable but normal delivering that is running in the bond market.”

Weighs on the tariff of Trump of CEOs of big banks: ‘considerable disturbance’

Bessent was also asked about weak US dollars and functions by Chinese.

“They are really weakening their currency, which are a losers for all. And then, when I hear all these stories that the dollar is no longer going to be reserved currency, if you end with the Chinese who are ready to use their currency as a business tool, it doesn’t look like a very good reserve for me.”

Euro and Japanese yen are 8% versus greenbacks.

We recession?

An American recession is possible that a handful of wall street firms are dialing. Jamie Dimon, CEO of JP Morgan Chase, shared his views this week.

“I hear it from everyone now.” It’s a matter of recession, “Dimon said in a special interview on Wednesday. “Morning with Maria.” Asked if he is expecting a recession personally, Dimon replied: “I am going to avoid my economists at this point, but I think it is probably a possible result.”

His firm increased the recession obstacles by 60%, while Goldman Sachs now watches 45% of the opportunity to kill a US.

Consumer apprehensions

Michigan University reported consumer surveys on Friday consumer sentiment The index from 57 to 50.8 in April this month, the fourth straight monthly drop.

Surveys from Joan Hasu, director of consumers, said, “This decline was widespread and unanimous during age, income, education, geographical field and political affiliation.”

Fear of recession, tariff uncertainty in consumer spirit soon dipped

“Bhavna has now lost over 30% since December 2024, which is amid growing concerns about the development of trade war, which have oscillated during the year. Consumers report several warnings that increase the risk of recession: business conditions, personal finance, income, inflation, and expectations for labor markets continue to fall in this month,” said Hasu.

inflation

The Consumer Price Index for March fell 0.1% vs. February, but above the 2% mandate of the Federal Reserve, 2.4% annually.

While the cost is decreasing, the prices of items such as eggs and non -cooked ground beef are 60% and 10% high respectively.

Gold safe shelter

Precious metal saw some instability this week, but rebounded for all time of $ 3,222.20 an ounce. 7% weekly benefits were the largest since March 2020. Even before the tariff wars grow, many strategists expressed rapid views on yellow metal, also a inflation hedge and a traditional safe shelter.

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According to an April research note by Franciso Blanches and Irina Shorshadz of Global Commodity Research of Bank of America, while traditionally inflation and real yields have been the chief driver of gold prices, recently the purchase of the Central Bank has emerged as the primary catalyst behind the increase in the current gold price. ” The team sees Gold reached $ 3,500,

Bitcoin

The largest cryptocurrency grew from the market price on Friday, which is above $ 83,000. Nevertheless, its all-time high fell from $ 106,734.51 to 21% in December 2024.