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Stocks inch up, dollar eases; China strikes back at Trump tariffs
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- April 11, 2025
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NEW YORK/LONDON, April 11 (Reuters) - Major stock indexes edged up in volatile trading, the U.S. dollar eased and gold prices hit another record high on Friday as China increased its tariffs on U.S. imports and a brutal week of market swings drew to a close.
The U.S. bond selloff resumed, with 10-year Treasury prices easing and yields - which move inversely to prices - on track for their biggest weekly increase in more than 43 years as investors remained nervous about further bond market liquidations.
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Investors digested a report showing that U.S. consumer sentiment deteriorated sharply in April and another showing U.S. monthly producer prices unexpectedly fell in March.
They also looked at results from some big Wall Street banks, which kicked off the quarterly U.S. reporting period. JPMorgan Chase (JPM.N), Morgan Stanley (MS.N) and Wells Fargo (WFC.N) were among the reports, which mostly showed major U.S. banks beat forecasts for the first quarter.
Markets have been rocked by the global trade war and worries about recession since U.S. President Donald Trump announced sweeping tariffs late on April 2.
On Friday, China hit back, hiking its tariffs on U.S. goods to 125%, from 84%.
The Dow Jones Industrial Average (.DJI) rose 67.71 points, or 0.14%, to 39,647.37, the S&P 500 (.SPX) rose 14.71 points, or 0.28%, to 5,282.76 and the Nasdaq Composite (.IXIC) rose 75.17 points, or 0.44%, to 16,458.73.
Technology led S&P 500 sector gains.
"A lot of de-risking has happened in the (tech) space and investors don't want to take too much risk of being too underweight in those areas," said Thomas Martin, senior portfolio manager at Globalt Investments.
MSCI's gauge of stocks across the globe (.MIWD00000PUS) fell 1.56 points, or 0.20%, to 777.71. The pan-European STOXX 600 (.STOXX) index fell 0.13%.
In the Treasury market, analysts said hedge funds and other asset managers offloaded bonds this week after getting margin calls and posting sharp losses from market volatility.
Strong auctions of 10-year and 30-year debt on Wednesday and Thursday helped stabilize the market somewhat, but many investors remain wary of buying bonds until there is further improvement in liquidity.
The yield on benchmark U.S. 10-year notes rose 14.3 basis points to 4.535%.
Earlier, euro zone bond yields eased, and the premium that holders of Treasuries demand to hold U.S. debt rather than German Bunds rose by the most in a week since the 1990s.
The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.41% to 100.11, with the euro up 1.07% at $1.1317.
Against the Japanese yen , the dollar weakened 0.61% to 143.61.
Against the Swiss franc , the dollar weakened 0.87% to 0.816.
Spot gold was up 1.8% at $3,230.75 an ounce, after hitting a record high of $3,237.56 earlier in the session. Bullion is up over 6% this week.
Reporting by Caroline Valetkevitch in New York and Amanda Cooper in London; Editing by Nia Williams
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