(Bloomberg) — A bounce in US stocks calmed nerves among equity investors, but the fallout from Donald Trump’s political maneuvering continued to shake global markets. Yields on German bonds surged as government leaders agreed on a massive defense spending package, while the ultimate haven asset — gold — topped $3,000 for the first time.
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Equities rebounded after a selloff that drove the S&P 500 down 10% from its all-time high, though American equities were still poised for a fourth week of losses, the longest such stretch since August. Treasuries joined their German counterparts lower, trimming a rally fueled by a flight to safety. Bullion climbed as much as 0.4% to $3,001.20 an ounce on Friday.
The moves capped a week of drama that included Trump’s on-and-off-again tariffs, recession calls, geopolitical talks and concerns over a US government shutdown. Combined with a plunge in the megacaps that have powered the bull market, global equity funds saw their biggest redemption this year.
“The markets are grappling with the notion of where fair value rests for a stock market that faces headwinds from tariffs, fiscal spending cuts, and potentially softening economic data, said Yung-Yu Ma at BMO Wealth Management. “Negative investor sentiment is building, so a multi-day relief rally could be coming soon.”
The S&P 500 rose 0.9%. The Nasdaq 100 climbed 1.4%. The Dow Jones Industrial Average added 0.4%.
The yield on 10-year Treasuries advanced three basis points to 4.30%. The Bloomberg Dollar Spot Index fell 0.1%.
Some of the main moves in markets:
Stocks
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The S&P 500 rose 0.9% as of 9:31 a.m. New York time
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The Nasdaq 100 rose 1.4%
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The Dow Jones Industrial Average rose 0.4%
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The Stoxx Europe 600 rose 0.6%
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The MSCI World Index rose 0.9%
Currencies
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The Bloomberg Dollar Spot Index fell 0.1%
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The euro rose 0.4% to $1.0893
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The British pound fell 0.1% to $1.2938
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The Japanese yen fell 0.5% to 148.57 per dollar
Cryptocurrencies
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Bitcoin rose 4.1% to $83,628.59
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Ether rose 3.5% to $1,906.33
Bonds
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The yield on 10-year Treasuries advanced three basis points to 4.30%
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Germany’s 10-year yield advanced five basis points to 2.91%
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Britain’s 10-year yield advanced two basis points to 4.70%
Commodities
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West Texas Intermediate crude rose 0.3% to $66.76 a barrel
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Spot gold rose 0.1% to $2,993.34 an ounce
