U.S. stocks closed higher after a volatile week in which a slew of trade-related headlines continued to dominate investor sentiment. The week opened with equities sharply lower, as negative sentiment intensified ahead of Wednesday’s implementation of the Trump administration’s latest round of tariffs. However, on Wednesday, Trump announced that he was authorizing a 90-day pause on the higher reciprocal tariffs for most countries to allow time for negotiations. The news sent stocks rocketing higher, with the Nasdaq Composite gaining over 12% and logging its second-best day on record. However, the Trump administration excluded China from the 90-day pause, instead announcing several increases to tariffs on Chinese goods throughout the week (up to 145%), while China responded with several increases to levies on U.S. imports (up to 125%). Stocks gave back some gains on Thursday. But once the dust settled, the S&P 500 Index finished up 5.70% for the week, while the Nasdaq Composite closed 7.29% higher. The volatility and uncertainty around global trade during the week weighed on U.S. Treasuries, which generated negative returns as yields increased across most maturities. The STOXX Europe 600 Index ended 1.92% lower as trade tensions intensified. The dollar index hit the weakest level since July 2023.
Have a great week-end
Charles for the team