Photo credit: www.thewrap.com
Markets Respond to U.S.-China Tariff Developments
In another dramatic trading session, all three major U.S. stock indexes surged by over 1.50% on Friday, concluding a week filled with volatility. This positive turn follows recent updates in the ongoing tariff negotiations between the U.S. and China. White House Press Secretary Karoline Leavitt communicated that the Trump Administration was “open to talks” with China regarding trade agreements.
Leavitt’s remarks came shortly after China announced an increase in tariffs on American goods to an unprecedented 125%. This escalation follows President Trump’s decision earlier in the week to hike tariffs on Chinese imports, raising them from 104% to 145%.
In a tweet on Friday morning, President Trump expressed optimism about his tariff policy, stating, “We are doing really well on our TARIFF POLICY. Very exciting for America, and the World!!! It is moving along quickly. DJT.”
On that Friday, the S&P 500 rose by 1.81%, the Dow Jones Industrial Average increased by 1.56%, and the Nasdaq Composite jumped by 2.06%. Collectively, all three indexes saw an increase of upwards of 6% compared to their starting point on Monday, recovering from a turbulent period the previous week.
A closer look at performance within the media and technology sectors reveals mixed results:
Meta: -0.50%
Google: +2.59%
Fox Corp: -1.27%
News Corp: +2.34%
Amazon: +2.01%
Disney: -0.39%
Comcast: +0.12%
WBD: -1.60%
Netflix: -0.31%
Roku: +1.60%
Snap Inc: +1.66%
Apple Inc. saw its stock rise by 4.06% to reach $198.15 per share. The tech giant, which previously experienced a loss of $1 trillion in market cap due to Trump’s announcement regarding tariffs on April 2, has gradually regained some ground. Led by CEO Tim Cook, Apple’s market valuation stands at approximately $3 trillion, although it remains significantly lower than its peak.
Concerns regarding Apple’s supply chain persist, especially since many of its products, including the iPhone, are manufactured in China. To mitigate the impact of the new tariffs, Apple reportedly arranged for airlift shipments of devices.
Friday’s trading marked a fitting conclusion to a week filled with market fluctuations. Following a significant downturn on Thursday, the markets had rallied on Wednesday in reaction to President Trump’s announcement to suspend the reciprocal tariff plan with various countries for a duration of 90 days to facilitate negotiations.
Another notable development came from the Federal Reserve, which indicated its readiness to intervene if market volatility continues to unsettle investors.
The Trump Administration has defended its tariff strategy as necessary, citing the need to protect American businesses and intellectual property from what they claim are unfair practices by China. Trump remarked, “Hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other countries, is no longer sustainable or acceptable.”
The trade tensions between the U.S. and China have created a significant impact across multiple sectors, including the entertainment industry. The China Film Administration announced plans to “moderately reduce” the number of American films screened in theaters going forward.
In light of these shifts, a Disney executive commented to TheWrap, “We’re not panicking. We are waiting and seeing.”
Source
www.thewrap.com