Global markets took a major hit on Friday as rising tensions from the ongoing trade war shook investor confidence. Stock markets dropped, the U.S. dollar weakened, and bonds were heavily sold off as fears of a global recession intensified.
The uncertainty pushed investors toward safe-haven assets like gold and the Swiss franc. Gold prices reached a new record high, and the Swiss franc hit a 10-year peak against the dollar. The Japanese yen and euro also gained strength.
The selloff in U.S. Treasury bonds worsened, with the 10-year yield rising sharply—the biggest weekly jump since 2001. Analysts say this is a sign that faith in the U.S. economy is fading.
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In Asia, Japan’s Nikkei dropped 4.5%, South Korea’s market fell 1.7%, and Chinese markets saw modest losses. U.S. stock futures also declined after steep overnight losses.
The trade war between the U.S. and China has escalated, with both sides raising tariffs. U.S. tariffs on Chinese goods now effectively stand at 145%, and China has responded by raising its own duties, possibly up to 84%.
Meanwhile, the dollar fell to multi-month lows against several currencies. The dollar index dropped below 100 for the first time since July 2023, and investors continued to move away from U.S. assets.
Despite a surprise drop in U.S. consumer prices in March, inflation concerns remain due to the impact of tariffs. Oil prices also dipped, while gold rose to $3,214 per ounce, boosted by demand for safer investments.
