- U.S. stocks posted their strongest weekly gains in over a year, despite sharp volatility.
- 10-year Treasury yields saw their biggest weekly spike in over two decades.
- Gold hit a record high as U.S.–China trade tensions escalated with reciprocal tariffs.
U.S. equity markets wrapped up a rollercoaster week with powerful gains. These were driven by a mix of cooling inflation data, strong bank earnings, and investor resilience despite ongoing geopolitical and economic stress.
Meanwhile, the bond market told a different story. Benchmark 10-year yields soared to 4.59% before settling at 4.50%, their largest weekly rise in more than 20 years.
Markets Rally Ends Tumultuous Week as Yields Jump and Gold Surges
The escalation in the U.S.–China trade war dominated investor sentiment throughout the week. After President Trump excluded China from a tariff pause, Beijing retaliated by raising import duties on U.S. goods to 125%. This intensified fears of a prolonged economic battle. The back-and-forth sparked some of the most volatile trading sessions in recent memory. The Dow swung more than 2,000 points daily earlier in the week.
Despite bond market jitters, Friday brought a relief rally. Investors shrugged off morning uncertainty and pushed equities higher as bank earnings surprised to the upside. Tech stocks recovered sharply, with Apple, Nvidia, and Broadcom posting notable gains. The Nasdaq saw its biggest weekly gain since 2022.
Gold’s surge above $3,250/oz reflects the rising global uncertainty. With the U.S. dollar weakening and inflation concerns brewing, investors sought shelter in traditional safe havens. Mining stocks soared alongside the metal, with Newmont and Barrick Gold experiencing double-digit weekly gains.
Elsewhere, Bitcoin rebounded from a sharp drop. This reflected increased speculative activity in response to risk shifts. Shares of Strategy (formerly MicroStrategy), a major crypto holder, jumped 10%. This reinforced crypto’s volatile but still relevant role in times of financial stress.
Despite a strong end to a chaotic week, the sharp rise in yields, escalating trade tensions, and shaky sentiment suggest more turbulence could lie ahead.
“The markets can remain irrational longer than you can remain solvent.”
— John Maynard Keynes
