US markets steady after whirlwind week sparked by Trump’s tariffs

Stocks inched higher on Friday as traders digested the latest tariff developments and looked to close out a turbulent week.

The S&P 500 rose 0.2 per cent, while the Dow Jones Industrial Average hovered around the flatline. The Nasdaq Composite gained 0.4 per cent.

This has been one of the most volatile weeks on record for Wall Street.

Markets tumbled on Thursday as traders pulled back amid growing uncertainty around trade policy, wiping out a significant portion of Wednesday’s historic rally.

That rally followed President Trump’s announcement of a 90-day pause on some of his steep “reciprocal” tariffs.

Larry Fink, BlackRock CEO has warned that the US economy may already be in a recession, as confidence continues to falter amid trade uncertainty.

He told CNBC on Friday: "I think we’re very close, if not in, a recession now."

Fears of an economic slowdown have grown sharply following President Donald Trump’s announcement of sweeping new tariffs last week.

While Trump has since paused some of the import levies for 90 days, Fink said the move has done little to calm markets or restore economic stability.

He added: "You’re going to see a slowdown across the board until there’s more certainty. And we now have a 90-day pause on the reciprocal tariffs — that means longer, more elevated uncertainty."

Fink’s comments come after a week of extreme market volatility, with investors reacting sharply to the shifting trade landscape and the prospect of weaker growth ahead.

The S&P 500 dropped 3.46 per cent on Thursday, while the Dow shed 1,014.79 points, or 2.5 per cent. The tech-heavy Nasdaq Composite ended the day down 4.31 per cent.

Just a day earlier, the S&P 500 had soared 9.52 per cent — its third-largest one-day gain since World War II — and the Dow surged by over 2,900 points.

Today, China fired back in the ongoing trade dispute, marking another escalation in the global tariff standoff that has shaken financial markets.

Since President Trump revealed his latest tariff plans earlier this week, US markets have taken a hit, with major indexes falling between six and seven per cent.

Meanwhile, gold prices have surged to record highs, as investors seek safer assets amid growing concerns over global tensions and market stability.

Currency markets have also seen big moves. The US dollar has dropped for five straight days and is heading for its worst week since 2022.

At the same time, the euro has jumped by as much as two per cent, reaching its highest level in three years.

JPMorgan's Jamie Dimon warned that the economy "is facing considerable turbulence," as his bank reported quarterly results.

Fink also said clients are feeling nervous and unsure about what’s coming, comparing the current mood to the 2008 financial crisis and the pandemic.

Meanwhile, French President Emmanuel Macron said the recent pause in US tariffs is "fragile" and warned that the EU should still be ready to hit back if needed.

The EU’s Trade Commissioner, Maroš Šefčovič, is set to meet US officials in Washington on Monday to discuss the situation.