S&P 500 Grabs Its Best Week Since November 2023 – US Market Wrap

Markets were rocked by Wall Street’s tumult, as stocks erased losses to continue their strongest weekly rally since 2023. After several tumultuous days that highlighted concerns that foreign investors are beating a retreat from American assets, the recovery occurred as a selloff in longer-term Treasuries and the dollar subsided.

There are worries that Trump’s rapidly changing trade policies are not only upending the global economy but also jeopardising the US’s position as the world’s safe haven, which is why volatility is not showing any signs of abating. A Federal Reserve official’s statement that the central bank is prepared to assist in stabilising markets, if necessary, caused the S&P 500 to jump by roughly 2%. Despite a decline, US 30-year yields are still up 45 basis points from last Friday.

Not since the pandemic has there been so little clarity about the outlook for economies, markets, and businesses, with China launching retaliatory measures and Trump suspending some levies only hours after they went into effect.

Variations of “uncertainty,” “unknowns,” and “turbulence” arose repeatedly as three of the largest US banks began the industry’s earnings reporting season on Friday. Jamie Dimon, CEO of JPMorgan, predicted “a kerfuffle” in Treasuries that would prompt a Fed intervention.

The S&P 500’s more than 10% intraweek trading range is comparable to the sharp price swings experienced during the pandemic.