Wall Street's main indexes opened lower on Friday as markets assessed the latest escalation in the trade war, with China increasing its tariffs on U.S. imports to 125%.
At 10:07 am, the Dow Jones edged up 5.23 points or 0.01% to close at 39,598.89, the S&P 500 rose 14.45 points or 0.27% to 5,282.50, and the Nasdaq gained 60.91 points or 0.37% to end at 16,448.22.
China announced on Friday that it was boosting its tariffs on U.S. exports to 125%, to match the level of U.S. tariffs not including an earlier 20% imposed weeks ago.
“The U.S. alternately raising abnormally high tariffs on China has become a numbers game, which has no practical economic significance, and will become a joke in the history of the world economy,” a Finance Ministry spokesman said in a statement announcing the new tariffs. “However, if the US insists on continuing to substantially infringe on China’s interests, China will resolutely counter and fight to the end.”
US government bonds faced selling pressure overnight, sending their yields higher and making US debt more expensive. On Friday morning, the 10-year Treasury yield was still up at 4.5 percent.
But JPMorgan Chase CEO Jamie Dimon said Friday that US Treasury bonds remained a safe place to invest in a "turbulent" world, even as he acknowledged an impact from recent market volatility.
JPMorgan Chase reported higher profits Friday driven partly by a jump in trading revenues, although Dimon warned of "considerable turbulence" facing the economy.
Not even a set of stronger-than-expected profit reports from some of the biggest U.S. banks was able to lift the stock market.
JPMorgan Chase, Morgan Stanley and Wells Fargo all reported stronger profit for the first three months of the year than analysts expected. JPMorgan Chase rose 1.6%, but Morgan Stanley slipped 0.2%, and Wells Fargo dropped 3%.
Another better-than-expected report on inflation also did little to help the mood. It could give the Federal Reserve more leeway to cut interest rates if it feels the need to support the economy. Lower rates would help make mortgages and other loans cheaper to get.
But Friday’s report on inflation at the wholesale level was backward looking, measuring March’s price levels. The worry is that inflation will feel more upward pressure in coming months as Trump’s tariffs make their way through the economy.
At 10:07 am, the Dow Jones edged up 5.23 points or 0.01% to close at 39,598.89, the S&P 500 rose 14.45 points or 0.27% to 5,282.50, and the Nasdaq gained 60.91 points or 0.37% to end at 16,448.22.
China announced on Friday that it was boosting its tariffs on U.S. exports to 125%, to match the level of U.S. tariffs not including an earlier 20% imposed weeks ago.
“The U.S. alternately raising abnormally high tariffs on China has become a numbers game, which has no practical economic significance, and will become a joke in the history of the world economy,” a Finance Ministry spokesman said in a statement announcing the new tariffs. “However, if the US insists on continuing to substantially infringe on China’s interests, China will resolutely counter and fight to the end.”
US government bonds faced selling pressure overnight, sending their yields higher and making US debt more expensive. On Friday morning, the 10-year Treasury yield was still up at 4.5 percent.
But JPMorgan Chase CEO Jamie Dimon said Friday that US Treasury bonds remained a safe place to invest in a "turbulent" world, even as he acknowledged an impact from recent market volatility.
JPMorgan Chase reported higher profits Friday driven partly by a jump in trading revenues, although Dimon warned of "considerable turbulence" facing the economy.
Not even a set of stronger-than-expected profit reports from some of the biggest U.S. banks was able to lift the stock market.
JPMorgan Chase, Morgan Stanley and Wells Fargo all reported stronger profit for the first three months of the year than analysts expected. JPMorgan Chase rose 1.6%, but Morgan Stanley slipped 0.2%, and Wells Fargo dropped 3%.
Another better-than-expected report on inflation also did little to help the mood. It could give the Federal Reserve more leeway to cut interest rates if it feels the need to support the economy. Lower rates would help make mortgages and other loans cheaper to get.
But Friday’s report on inflation at the wholesale level was backward looking, measuring March’s price levels. The worry is that inflation will feel more upward pressure in coming months as Trump’s tariffs make their way through the economy.
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