US stock market boom amid tariff war, this week on Wall Street was historic due to fluctuations

The US stock market witnessed a boom on Friday amidst the threat of a tariff war. However, the declining value of the US dollar and the turbulence of the financial market have shown that there is a climate of fear in the market because of a likely tariff war between China and the US. The S&P 500 saw a rise of 1.8%. Meanwhile, the Dow Jones Industrial Average began with a downslide of 340 points and moved towards a rise of 810 points before ending with a rise of 619 points or 1.6%.

Meanwhile, the Nasdaq Composite went up by 2.1%. In total, the S&P 500 went up by 95.31 points to 5,363.36 on Friday. The Dow Jones Industrial Average gained 619.05 to 40,212.71, and the Nasdaq Composite gained 337.14 to 16,724.46. Stocks are said to have gone up because there was a mild relief from pressure from the US bond market. The yield on the 10-year Treasury rose above 4.58% in the morning, up from 4.01% a week ago. However, by noon it was back to 4.48%. Such a surge could increase the rates of mortgages and other loans given to homes and businesses in the US. This will slow down the pace of the US economy.

Market experts are expressing apprehension that investors outside the US may sell their US bonds due to the ongoing tariff war between the US and China. They may do this to cover hedge funds and other losses. This is also putting a question mark on the reputation of the US market, which is considered the safest market in the world. On Friday, the price of the US dollar fell against the euro, Japanese yen and Canadian dollar. Due to the trade war, American consumers are skeptical and this may affect their spending. This can be harmful to the US economy.