Markets Rebound Slightly Amid Trade Policy Uncertainty

US: Modest Gains After a Tough Week

US markets recovered slightly but still marked their worst week in months due to investor concerns over trade policy shifts. The Dow Jones $DJIA(.DJI)$  rose 222.64 points (+0.5%) to 42,801.72, while the S&P 500 $S&P 500(.SPX)$  climbed 31.68 points (+0.5%) to 5,770.20. The Nasdaq Composite $NASDAQ(.IXIC)$  gained 0.7%, reflecting cautious optimism despite ongoing trade policy turbulence.

Europe: Trade Policy Jitters Weigh on Markets

European markets struggled as uncertainty deepened following Donald Trump's second reversal on tariffs. The German DAX dropped 1.6%, the French CAC 40 fell 1.1%, while the FTSE 100 was flat, reflecting investor hesitation. The euro surged, posting its largest weekly rise since the financial crisis, adding to market volatility.

Asia: Bond Yields Pressure Asian Equities

Asian markets slipped as rising long-term Japanese government bond yields—hitting their highest levels since 2008—added pressure. Nikkei 225 dropped 2.1%, Hang Seng $HSI(HSI)$  declined 0.5%, and the Shanghai Composite edged down 0.2%, highlighting regional vulnerability to global financial uncertainties.

Outlook and Insights: Navigating Volatile Waters

The near-term outlook remains volatile, with markets reacting sensitively to trade policy shifts and rising bond yields. Investors should monitor developments in US trade negotiations and European currency movements. While US equities show resilience, geopolitical risks and monetary policy changes could drive further fluctuations across global markets.

Conclusion

Despite a modest rebound in US markets, global uncertainty remains elevated. Investors are advised to stay cautious, focusing on diversified strategies and risk management as trade tensions and rising yields continue to shape market sentiment.