Wall Street Posts Strong Weekly Rally After Tariff Suspensions

All three major Wall Street indexes ended Friday’s session with solid gains, as investors absorbed a shifting global trade landscape and quarterly earnings from major banks.

The Dow Jones Industrial Average, which tracks 30 blue-chip companies, rose 1.56% to 40,212.71 points. The S&P 500, representing the most valuable U.S. companies, climbed 1.81% to 5,363.36, while the tech-heavy Nasdaq Composite jumped 2.06% to 16,724.46.

SPX

While the U.S. raised tariffs on Chinese goods to 145% this week and Beijing retaliated with tariffs of up to 125%, investors viewed the developments as a potential de-escalation, as Washington’s protectionist efforts appeared to be increasingly targeted at China.

Midweek, President Donald Trump announced a 90-day suspension of tariffs on dozens of countries—a move that triggered a historic stock market rally and marked the S&P 500’s best single-day performance since the 2008 financial crisis.

Positive Earnings and Banking Earnings

Adding to the positive sentiment were reassuring comments from key Federal Reserve officials. Boston Fed President Susan Collins stated that the central bank is prepared to step in to keep financial markets functioning if necessary. Meanwhile, New York Fed President John Williams dismissed fears of stagflation, asserting that the Fed remains ready to act to keep inflation under control without sacrificing growth.

Bank earnings also helped lift the market. Shares of JPMorgan Chase rose 4% after the Wall Street giant posted stronger-than-expected results. Morgan Stanley gained 1.44%, also beating analysts’ estimates.

Weekly Results in Wall Street

For the week, the three major indexes posted strong rebounds. The Dow rose 4.95% but remains down 5.48% year-to-date. The S&P 500 climbed 5.70%, trimming its 2025 loss to 8.81%, while the Nasdaq surged 7.29%, though it’s still down 13.39% for the year.