U.S. Stocks Face Volatility Amid Tariffs and Earnings
U.S. stocks started lower on Friday, with the S&P 500 down 0.44% and the Nasdaq off 0.2%. Though, buyers soon stepped in, turning the major indices green. This week has been marked by critically important market volatility.
The Dow Jones Industrial Average lost nearly 400 points, erasing some mid-week gains. This decline is partly due to China raising tariffs on U.S. imports to 125%, effective April 12, 2025. Despite this, Beijing has stated it won’t increase duties further.
Investors are also reacting to bank earnings. JPMorgan, Wells Fargo, and BlackRock all reported profits before the market opened. JPMorgan, for example, posted a net income of $14.6 billion and earnings per share of $5.07 in Q1.
Though, the producer price index (PPI) for march showed a 0.4% drop from February, the largest since October 2023. This was below the expected 0.2% rise. The year-over-year PPI was 2.7%, lower than the 3.3% consensus.
Despite the month-on-month drop in consumer prices to 2.4%,tariffs concerns overshadowed this data. The S&P 500 is still on track for a weekly gain, thanks to a risk asset surge on Wednesday following a 90-day tariffs pause by Trump.
With the 10-year Treasury yield rising above 4.41% and the dollar weakening, investors are flocking to gold.The precious metal has hit a new all-time high above $3,200.
