Stocks and Bonds Rise after a Week of Upheaval – US Market Wrap
Stocks rose as bonds halted their selloff, restoring some calm to Wall Street after seven sessions of tumultuous trading fuelled by President Donald Trump’s disruptive trade war.
The S&P 500 gained nearly 1% after the White House signalled a tariff reprieve on key consumer electronics. Apple extended its two-day gain to more than 6%, leading gains in megacaps. Carmakers rallied after Trump proposed exemptions for auto parts facing 25% US levies. Treasuries reversed a five-day slide, sending 10-year yields higher by the most in more than two decades.
Investors are still struggling to forecast the economic consequences of the trade war due to the back-and-forth in negotiations. While US officials insist the tariff strategy is carefully constructed, critics see the trading order as susceptible to the whims of a transactional president.
Despite the market volatility and uncertainty, most equities strategists expect the S&P 500 to rally through the rest of 2025.
The S&P 500 performed well last week, but is still down for the year as Trump imposed significant tariffs on goods imported from China, Canada, Mexico, the EU, and numerous other US trade partners. The benchmark closed trading on Tuesday, down 15% for 2025, before reversing course on Thursday when Trump announced a 90-day delay on many of his tariffs.
