US stocks close higher, ending week of historic volatility with upswing
U.S. stocks closed higher on Friday, ending one of the most volatile weeks in Wall Street history on an upswing, despite an escalating U.S.-China trade war and acute inflation fears.
The Dow Jones Industrial Average jumped 618 points, or 1.5%, at the close of trading. The S&P 500 surged 1.8%, while the tech-heavy Nasdaq increased 2%.
Meanwhile, a selloff of 10-year Treasuries sent yields climbing to 4.47%. That figure neared a recent high attained hours before President Donald Trump announced on Wednesday a 90-day delay of so-called "reciprocal tariffs" for most U.S. trade partners.
A University of Michigan survey of shopper sentiment on Friday showed year-ahead inflation expectations stand at their highest level since 1981.
The market turmoil Friday morning came after China issued a 125% U.S. tariff, though Beijing said it would not increase tariffs further. The move came in response to a 145% tariff on Chinese goods announced by Trump earlier this week.
Larry Fink, the CEO of financial firm BlackRock, which manages about $11.5 trillion in assets, warned that the U.S. economy is poised for a downturn.
"I think we're very close, if not in, a recession now," Fink told CNBC.
In a social media post on Friday, Trump signaled confidence.
"We are doing really well on our TARIFF POLICY. Very exciting for America, and the World!!! It is moving along quickly," Trump said on Truth Social.
U.S. markets closed Thursday with notable losses, a reversal from the enthusiasm unleashed by Trump's Wednesday decision to pause some tariffs, which triggered a historic stock-market rally.
Several Asian stock markets slid back into the red on Friday morning, reversing gains made on Thursday amid continued uncertainty as to whether nations would be able to secure deals with Trump to avoid long-term tariffs -- and as China announced new retaliatory tariffs on American goods.
Tokyo's Nikkei 225 index slipped 3.8% and Japan's broader TOPIX index fell 3.5%. In South Korea, the KOSPI dropped nearly 1% and Australia's S&P/ASX 200 dipped 0.95%.
In China, markets fluctuated as investors responded to the White House clarifying that the level of tariffs on Chinese goods is now 145% -- not 125% as previously believed.
Hong Kong's Hang Seng index rose 2%, Shanghai's Composite Index rose 0.6% and Shenzen's Component Index rose 1.2%, with investors buoyed by Beijing's announcement of stimulus measures to bolster the economy against the escalating American tariffs.
Other prominent Asia indices in the green on Friday included Taiwan's Taiex index up 2.7% and India's NIFTY 50 up 1.9%.
European markets appeared hesitant upon opening and slipped after China announced it would increase tariffs on U.S. goods from 84% to 125% from Saturday.
The pan-European STOXX 600 fell 0.3%, Germany's DAX fell 0.2%, France's CAC 40 fell 0.16% and Britain's FTSE 100 slid 0.03%.
On Thursday, Trump again hinted at the resumption of his sweeping tariffs.
"If we can't make the deal we want to make or we have to make or that's, you know, good for both parties -- it's got to be good for both parties -- then we go back to where we were," Trump said.
When asked if he would extend the 90-day pause, the president responded, "We'll have to see what happens at the time."
