US stocks jumped Friday after the White House optimistically signalled a trade deal with China. This returned early in the morning with a 125% tax on US goods, but ended a very unstable week on Wall Street.
The Dow Jones industrial average scored 619 points (1.6%) after plunging 1,014.79 the day before. The Blue Chip Dow rose 5% this week. This is the largest percentage increase since November 2023.
The index has been on Wildride for the past week as the market struggles to absorb news of the trade war after and after Trump revealed so-called “mutual” tariffs last Wednesday.
The S&P 500 and Nasdaq jumped to 1.8% and 2.1% on Friday, respectively. The Nasdaq surged 7.3% that week, the biggest profit since November 2022.
The stock index plunged Friday morning after China marked its third retaliatory effort against the US. The stock recovered losses by the afternoon after the White House said Trump was “optimistic” to seek a deal with the US.
China's move to raise tariffs on US imports comes shortly after Trump announced a 125% tax on the country and denounced “lack of respect.”
The White House later confirmed that China's total tariff was 145% after stacking on top of previous taxes.
At a press conference Friday, a spokesman for the Chinese Commerce Department said the Trump administration's tariff approach was “a number game that has no practical meaning in economics.”
“It became a joke,” the spokesman continued to excavate in Trump.
However, China also offers investors a faint hope of a bit of hope in fear that the trade war will reheat inflation, suggesting it is not trying to raise prices again in the future.
“If the US continues to impose tariffs on Chinese goods exported to the US, China will ignore it,” the country's Treasury ministry said.
