Tariffs, Tweets & Tumult: What Really Happened in the Market This Week

If you’ve been watching the stock market this past week, you probably felt like you were on a rollercoaster. Big headlines, sudden reversals, and confusing jargon made it tough to keep up. Don’t worry—we’ve broken it down for you in plain English.

Here’s what you need to know.

Markets Soared—But Why?

All three major stock indexes (S&P 500, Nasdaq, and Dow Jones) ended the week much higher. The S&P 500 alone gained over 5%, with tech stocks leading the charge.

The big reason? President Trump announced a 90-day pause on new tariffs against China, which brought some short-term relief to investors. On the day that news became official, markets skyrocketed:

The S&P 500 gained 9.5%

The Nasdaq jumped 12.2%

The Dow had its biggest one-day point gain in history

But the optimism didn’t last long.

What’s Up With the Tariffs?

Earlier in the week, there was confusion. A tweet claiming a “tariff pause” sent markets soaring, only for the White House to deny it hours later. Then, a few days later, the pause actually did happen.

During this chaos, the U.S. raised tariffs on Chinese goods to 145%, and in response, China raised its own tariffs to 125%. That means goods moving between the two countries have become much more expensive—hurting trade, profits, and global supply chains.

China’s president warned that “no one wins in a tariff war,” but also said they’re ready to fight back if needed.

Bonds, Yields & Gold—What It All Means

While stocks were swinging wildly, the bond market was flashing warning signs.

Usually, when things look risky, investors buy U.S. Treasury bonds for safety. But this week, they were selling bonds instead. Why? Uncertainty about how the U.S. will handle its growing debt load, especially with rising tariffs and slowing growth.

As a result, bond yields (interest rates) spiked, with the 10-year yield seeing its biggest jump since 2001.

Here’s the takeaway: the higher the yield, the more expensive it becomes for the U.S. government to borrow money. And that can lead to bigger problems down the road.

Investors also ran to gold and foreign currencies like the Swiss Franc and Japanese Yen—assets seen as safer during turbulent times.

 What About the U.S. Dollar?

Despite bond yields going up, the U.S. dollar actually fell 3% this week. That’s unusual. Typically, higher interest rates attract more global investors, boosting the dollar. But this time, fear over the economy outweighed those effects.

There are even whispers that China might be selling off its U.S. Treasury bonds as part of the trade war—but there’s no solid proof yet.

Consumer Sentiment: People Are Worried

Even though inflation reports this week showed prices rising more slowly than expected, American consumers aren’t buying the optimism.

The University of Michigan’s consumer sentiment index fell to 50.8—the second-lowest reading ever.

One-year inflation expectations jumped to 6.7%, the highest since 1981.

Translation? People are afraid. And when people feel uncertain about the future, they spend less, invest less, and worry more about losing their jobs—which can lead to a slowdown, even if economic data doesn’t show it yet.

Big Banks Report: Cautiously Optimistic

The major U.S. banks reported their earnings, and while most beat expectations, their CEOs didn’t sound too excited:

JPMorgan’s Jamie Dimon said the world faces “considerable turbulence.”

BlackRock’s Larry Fink thinks we’re already in a recession or close to one.

Morgan Stanley is staying “cautiously optimistic” but says deal-making is on pause.

The takeaway: Wall Street might be making money now, but they’re preparing for bumps ahead.

Bottom Line for New Investors

This week was a reminder of how fast markets can change—and how important it is to stay focused on the bigger picture.

Here’s what you can take away:

Markets can rise even in times of bad news—often on hope.

Trade wars and tariffs affect more than just prices—they impact jobs, consumer confidence, and global growth.

Don’t panic with every headline. Instead, invest with a long-term plan and diversify to protect your portfolio.

It’s not about timing the market perfectly. It’s about time “in” the market!