FX.co ★ US Stocks Extend Losses

On Friday, U.S. stocks experienced a decline, extending the vigorous selloff and maintaining the week's volatile trend as markets continued to evaluate the risks of a potential U.S. recession, exacerbated by the escalating trade dispute with China. The S&P 500, Dow Jones Industrial Average, and Nasdaq 100 each fell approximately 0.5%. The bond market and the U.S. dollar also faced selloffs, highlighting concerns about instability in the financial system and reflecting investors' growing unease over unpredictable economic policies. In a series of rapid tariff adjustments by President Trump, tariffs on China reached 145%, prompting China to retaliate with its own 125% tariffs, although U.S. tariffs on metals and chemicals remain steadfast. In terms of corporate earnings, most banks reported declines after issuing their earnings reports, with Wells Fargo and Morgan Stanley dropping between 1% and 2.5%. Conversely, JPMorgan saw an uptick following record revenue figures. Despite the recent volatility, equity indices are expected to end the week higher, buoyed by a historic rally on Wednesday.