Dow, S&P 500, Nasdaq rise after China hits back in trade war, bank earnings roll

US stocks swung back to gains on Friday as investors weighed the chances of a reprieve in the trade war, after China hit the US with a retaliatory tariff hike but signaled it won’t hike duties any further.

The S&P 500 (^GSPC) rose 0.5%, and the tech-heavy Nasdaq Composite (^IXIC) climbed 0.8%. The Dow Jones Industrial Average (^DJI) moved up 0.5%.

China said Friday it will raise duties on imports of US goods to 125%, compared with the 84% previously planned, effective Saturday. The move is in direct response to President Trump’s ballooning “reciprocal” tariffs on China, the commerce ministry said, but it also suggested it will “ignore” any retaliatory US hikes in duties.

Big Wall Street banks got first quarter earnings season going in earnest on Friday, with results rolling in from JPMorgan (JPM), Wells Fargo (WFC), and BlackRock (BLK). Their stocks rose modestly following those quarterly reports before the bell, closely studied for signs of headwinds from the tariff turmoil. JPMorgan CEO Jamie Dimon said the US economy is going through “extreme turbulence.”

Read more: Live updates on Trump tariffs fallout

Trump’s fast-moving tariff policy has whiplashed stocks this week, which saw the major US indexes notch historic gains during Wednesday’s session but then tank on Thursday. Despite that rout, the major indexes are positioned for their best week in months, largely on the back of the mid-week surge.

The volatility has also thrust moves of Treasurys and commodities into the spotlight. The benchmark 10-year Treasury yield (^TNX) continued a recent march higher, touching 4.5%. Meanwhile, the dollar (DX=F) index tumbled, at one point reaching lows not seen since 2022. And gold (GC=F) is once again the “place to be” amid the turmoil, jumping to another record on Friday.

Investors will get the March reading on the Producer Price Index later in the day, providing another piece of the pre-tariff inflation puzzle.

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