US stocks rise amid trade war fears, bond market volatile

From Yahoo Finance: 2025-04-10 21:13:00

U.S. stocks surged Friday amid ongoing fears of escalations in President Donald Trump’s trade war with China. The S&P 500 rose 1.8%, while the Dow Jones Industrial Average gained 619 points, and the Nasdaq composite jumped 2.1%.

The U.S. bond market showed signs of worry this week, with the 10-year Treasury yield spiking to 4.58% before easing back to 4.48%. Such volatility can impact mortgages and other loans, indicating stress in the financial system.

Rising U.S. Treasury yields could be due to global investors selling U.S. bonds amid trade war tensions. Concerns about the U.S.’s reputation as a safe haven for cash may also be contributing to the turmoil in financial markets.

China announced a tariff increase on U.S. products, escalating tensions in the trade war. The uncertainty is eroding consumer confidence, which could have negative effects on the economy already running at a solid rate.

The Federal Reserve may intervene if market conditions worsen, with tools to address concerns about market functioning. Despite a 90-day pause on some tariffs, rising tensions between the U.S. and China could still lead to a global recession.

Strong profit reports from major U.S. banks helped boost the stock market, with JPMorgan Chase, Morgan Stanley, and Wells Fargo exceeding analysts’ expectations. However, concerns about inflation and the impact of Trump’s tariffs remain a worry for investors.

Stock markets abroad showed mixed results, with Germany’s DAX losing 0.9% and the FTSE 100 in London gaining 0.6%. Japan’s Nikkei 225 dropped 3%, while Hong Kong’s Hang Seng climbed 1.1%. The economic impact of the trade war is being felt globally.



Read more at Yahoo Finance: US stocks jump and the bond market swings to cap Wall Street’s chaotic and historic week