On a brighter note, the bond market offered some relief. As stocks declined, government bond yields fell, leading to gains in bond prices. The yield on the 10-year Treasury dropped by about 0.16% to close the week around 4.3% while the US Dollar closed essentially unchanged, providing a tailwind to commodities in general. Gold rallied another 2.1% to fresh all-time highs, Copper added another 3.5%, and Oil bucked the recent down-trend with a gain of nearly 4%.

Once the dust settled, the S&P 500 Index finished up 5.70% for the week, while the Nasdaq Composite closed 7.29% higher. The Dow Jones Industrial Average put up nearly 5% for the week, while the small cap Russell 2000 Index lagged, but still posted a 1.82% gain.

The turbulence began on Tuesday, April 2nd, when President Trump implemented a minimum 10% tariff on all countries, with higher rates for nations where the U.S. faces larger trade deficits. As things stand right now, China, in particular, will endure a 34% tariff, which is in addition to the 20% tariffs imposed earlier this year. Other major U.S. trading partners, such as the European Union, Vietnam, and Japan, will also see tariffs of 20% or higher.

That said, the economy itself doesn’t appear to be in as rough a shape as market sentiment might suggest. While GDP estimates were lowered, they’re still positive, and the job market remains relatively strong with steady hiring. People and businesses are still spending, corporate profits are up for the most part, and inflation has been easing.

United Health shares plummeted 7+% after reports that the Department of Justice is investigating its Medicare billing practices a day after Walmart’s disappointing outlook and broader concerns over the impact of President Trump’s tariff policies. The U.S. Composite PMI missed estimates with the Services index falling into contraction territory for the first time in over two years, while manufacturing prices rose. Consumer sentiment also weakened, with the University of Michigan’s index falling as inflation expectations for the next year handily topped expectations.