Last week on the US stock exchanges was marked by significant fluctuations, which ultimately resulted in a positive close. This development is of interest to investors in the German-speaking area, as it affects the global economy and trade relations.
Background of the Turbulence
The turbulence on the US stock exchanges was mainly triggered by the unpredictable tariff policy of US President Donald Trump. Initially, Trump announced harsh tariffs on foreign goods, leading to a strong market reaction. Later, it became known that he would suspend the tariffs for 90 days, resulting in a massive surge in prices.
Market Reactions
- Dow Jones Industrial: The Dow Jones closed on Friday with a gain of 1.56 percent at 40,212.71 points, which corresponds to a weekly gain of about five percent.
- S&P 500: The S&P 500 rose by 1.81 percent to 5,363.36 points, marking a weekly increase of around 5.7 percent. It was the most profitable week for the index since November 2023.
- Nasdaq 100: The Nasdaq 100, heavily influenced by technology stocks, increased by 1.89 percent to 18,690.05 points, achieving a weekly increase of nearly seven and a half percent.
Impact on Other Markets
The positive developments on the US stock exchanges also affected other markets:
- Asian Markets: Asian exchanges, such as the Nikkei 225 in Tokyo, followed the upward trend and also recorded significant gains.
- European Markets: The German DAX was able to recover its losses in after-hours trading, while the Swiss SMI had to endure a small loss.
Trade Talks with China
The positive market reaction to the suspension of tariffs and hopes for trade talks with China were crucial for the upswing. However, the situation remains tense, as China has imposed counter-tariffs and the US has increased tariffs on Chinese goods.
Recession Concerns
Despite the positive developments, there are still concerns about a potential recession in the US. Larry Fink, CEO of Blackrock, stated that the US economy is close to a recession, which is exacerbated by the tariff dispute.
In summary, the turbulent week on the US stock exchanges was characterized by strong price fluctuations that ultimately led to a positive close. The unclear tariff policy and hopes for trade talks with China play a central role in the future development of the markets.