US financial markets experienced a volatile week as President Trump’s tariff plan sparked retaliation from China. The Dow Jones Industrial Average gained 5% for the week, while the S&P 500 nearly 6% and the Nasdaq Composite 7%.
The market’s resiliency was noted by BlackRock CEO Larry Fink, who said he remains optimistic about capital markets despite near-term uncertainty. However, a handful of Wall Street firms raised their odds of a US recession to as high as 60%, citing growing consumer fears and uncertainty around tariffs.
Consumer Sentiment Index dropped to 50.8 this month from 57 in April, with consumers reporting multiple warning signs that raise the risk of recession. The 10-year Treasury yield hit 4.5%, its highest since February, while investors pull money out over concerns of a looming recession.
Despite these challenges, gold prices rebounded to an all-time high of $3,222.20 an ounce, driven by central bank buying and inflation concerns. The largest cryptocurrency, Bitcoin, rose Friday but remains down 21% from its all-time high reached in December 2024.
Source: https://www.foxbusiness.com/markets/wild-week-stocks-bonds-dollar-tariff-war-rages