Actions jump, bonds are swinging while the drop in the US dollar indicates more fear in the middle of the trade war

NEW YORK (AP) – US stocks jumped on Friday in another day maniac at Wall Street, while the drop in the value of the US dollar and other oscillations on the financial markets have suggested that fear is still high on the escalations in the trade war of President Donald Trump with China.

The S&P 500 joined 1.8%, after having spun several times between gains and losses, to cap a chaotic and historic week full of monstrous swings. The industrial average of Dow Jones went from an early loss of almost 340 points for a gain of 810 before settling in an increase of 619 points, or 1.6%, while the NASDAQ composite jumped 2.1%.

WATCH: Trump defends huge prices on China while the markets take another decline

The shares gave a kick on the rise because the pressure was a little relaxed within the American bond market. It is usually the most annoying corner of Wall Street, but it flashed sufficiently serious concern this week for this to require the attention of investors and Trump.

The yield on the 10 -year treasure exceeded 4.58% in the morning, against 4.01% a week ago. It is a major decision for a market that generally measures hundredths of a percentage point. Such jumps can increase rates for mortgages and other loans to American households and companies, which would slow the economy, and they can indicate stress in the financial system.

But the yields of the treasury retired as the afternoon progressed, and the 10-year yield regressed at 4.48%. It is always higher than the day before, but not also by also the eyes.

Susan Collins, president of the Federal Reserve Bank of Boston, told Financial Times that the Fed “would be absolutely prepared” if the markets become disorderly and that “has tools to respond to concerns concerning the operation or liquidity of the market if they arise”.

Find out more: Before Trump sets pricing threats, inflation would cool

Several reasons could be the source of this week’s jump in the yields of the American treasury, which is unusual because yields generally fall when fear is high.

Investors outside the United States could sell its American obligations due to the trade war, and hedge funds could sell everything available in order to collect funds to cover other losses. More worrying, doubts can be faced with the reputation of the United States as the safest place in the world to keep money due to Trump’s frantic and reverse pricing actions.

The value of the US dollar also went up on Friday against everything, from the euro to the Japanese yen to the Canadian dollar.

The gold, however, was up to its reputation as a safer refuge for investors and saw its price increase to another record.

WATCH: A solution to the American-Chinese trade war can take some time ”, says Derek Scissors of Aei

Fragile trading came after China announced on Friday that it increased its 125% American products on the last increase in the Trump Trump’s climbing on imports from China.

The repeated American rate increases “on China has become a game of figures, which does not matter practical economic, and will become a joke in the history of the world economy,” said a spokesman for the Ministry of Finance in a statement announcing the new prices. “However, if the United States insists on continuing to harm China’s interests, China Counter-Conrete-et will fight until the end.”

The rise in tensions between the two largest economies in the world could lead to generalized damage and a possible global recession, even after Trump recently announced a 90 -day break on some of his prices for other countries, with the exception of China.

WATCH: What the prices and trade war threats mean to the American shoe industry

All the uncertainty caused by the trade war erodes confidence among American buyers, which could affect their expenses and translate into damage to the economy, which has entered this year at a solid pace.

A preliminary survey of the University of Michigan suggested that the feeling of American consumers falls even more strongly than economists waiting for it. “This decline was, as last month, omnipresent and unanimous through age, income, education, the geographic region and political affiliation,” according to the director of the investigation, Joanne Hsu.

“We remain in the first rounds of this world commercial regime change, and although the 90 -day break on reciprocal prices has temporarily reversed market sale, it extends uncertainty,” according to Darrell Cronk, president of Wells Fargo Investment Institute.

This is why a lot of Wall Street are prepared for more swings to hit the markets. Last week started with huge oscillations for American stocks in every day while rumors swirled, then fought on a possible 90 -day break on Trump’s prices. Then, the US stock market spent one of his best days in history after Trump has offered a break before swinging to finish the week.

All in all, the S&P 500 increased 95.31 points on Friday to 5,363.36 on Friday. The industrial average of Dow Jones has climbed from 619.05 to 40,212.71, and the NASDAQ composite climbed from 337.14 to 16,724.46.

Friday’s oscillations came after a set of stronger than expected profit reports of some of the largest American banks, which traditionally contributes to launching each season of reports on profits.

Jpmorgan Chase, Morgan Stanley and Wells Fargo all brought back a stronger profit for the first three months of the year than analysts did not provide for it. Jpmorgan Chase increased by 4%, Morgan Stanley added 1.4%and Wells Fargo lost 1%.

Another report on inflation has also been better than expected. This could give the federal reserve more latitude to reduce interest rates if it feels the need to support the economy.

But the Friday report on inflation in large was behind, measuring the price levels of March. The concern is that inflation will increase in the coming months when Trump’s prices make their way through the economy. And that could bind the hands of the Fed.

The University of Michigan survey suggested that American consumers are preparing for an inflation of 6.7% in the coming year. It is the highest forecast since 1981, and these expectations can create a feedback loop that pushes inflation above.

In stock markets abroad, the indices were dispersed worldwide. Germany Dax lost 0.9%, but the FTSE 100 in London added 0.6% while the government said that the economy, the sixth largest in the world, experienced growth in February. The Nikkei 225 of Japan dropped by 3%, while Hang Seng of Hong Kong climbed 1.1%.

The screenwriters of the AP Jiang Junzhe and Elaine Kurtenbach contributed.