NEW YORK, 12 April 2025 (BSS/AFP) – US stock markets closed firmly higher on Friday, wrapping up a volatile week with strong gains, as investors clung to hopes that the worst of the trade conflict shockwaves may have passed.
Markets Rebound Amid Trade Tensions
Despite a fresh blow in the ongoing US-China trade spat—Beijing announcing 125% tariffs on certain American imports—Wall Street managed to shake off early losses, signalling cautious optimism that the conflict could transition from escalation to negotiation.
“The hope is that we’re pivoting from the escalation phase towards potential negotiations, and possibly even de-escalation,” noted Angelo Kourkafas of Edward Jones.
“A lot of the bad news may already be priced into the market.”
This sentiment pushed major indices into positive territory by the close of trading:
| Index | Closing Value | Change (%) |
|---|---|---|
| S&P 500 | 5,353.36 | +1.8% |
| Dow Jones Industrial Average | 40,212.71 | +1.6% |
| Nasdaq Composite | 16,724.46 | +2.1% |
Week in Review: Policy Whiplash and Economic Jitters
The week was characterised by sharp swings in equity prices, triggered largely by shifting positions in the international trade arena. President Trump’s inconsistent rhetoric on tariffs, coupled with mixed signals from major global players like the European Union—which announced retaliatory tariffs only to later suspend them—added to market uncertainty.
On the macroeconomic front, fresh concerns emerged on Friday with the release of a University of Michigan survey, which revealed a steep decline in consumer sentiment. The data also flagged an uptick in inflation expectations, both in the short and long term, fuelling fears of a possible recession.
| Indicator | Latest Reading | Previous |
|---|---|---|
| Consumer Confidence Index | 69.1 (April) | 79.3 (March) |
| 1-Year Inflation Expectation | 4.6% | 3.4% |
| 5-Year Inflation Expectation | 3.2% | 2.9% |
Earnings Season Offers Some Relief
The quarterly earnings season officially kicked off on Friday, with major financial institutions setting the tone.
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JPMorgan Chase rose 4.0%, buoyed by better-than-expected earnings and strong consumer lending.
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BlackRock posted a 2.3% gain, reflecting solid asset management performance.
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Morgan Stanley edged up 1.4%.
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Wells Fargo, however, dropped 1.0%, weighed down by weak mortgage revenue.
Analysts are watching earnings closely to gauge corporate health in an uncertain macroeconomic climate, especially in light of trade pressures, inflation, and shifting central bank policies.
Looking Ahead: Volatility Likely to Persist
While Friday’s rally brought some relief, analysts caution that volatility is likely to continue. Geopolitical tensions, evolving fiscal policies, and consumer sentiment will remain in focus as investors seek clarity.
In particular, Federal Reserve commentary and further economic indicators in the coming weeks could influence sentiment and shape expectations for interest rate moves later this year.
“The market wants direction, but it’s still navigating through fog,” said one senior strategist at a Wall Street bank. “Next week’s earnings reports and inflation data will be pivotal.”
