Volatility intensifies worries for tariff-tossed US stocks

Wild swings in global markets are poised to keep US stock investors on edge in the coming week, as a weakening dollar and a selloff in Treasuries compound extreme equity volatility that erupted after President Donald Trump launched his sweeping tariffs.

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The S&P 500 was set for solid gains on the week after Trump pulled back on the heftiest tariffs on many countries, relieving Wall Street's worst-case scenario. Still, the benchmark index still was down about 138 from its February 19 all-time closing high. Concerns about lasting economic damage remained as the US and China ratcheted up their trade battle and questions lingered over levies elsewhere as Trump only paused many of the most severe tariffs.

Investors punished US assets in the wake of Trump's tariffs, with the dollar plunging against other major currencies and benchmark US Treasury yields, which move opposite to bond prices, surging. The stock market is "very unsettled" as investors weigh how to price in any economic fallout from the changing tariff backdrop, said Mark Luschini, chief investment strategist at Janney Montgomery Scott.

The market is "kind of trapped by the level of uncertainty that lurks out there," Luschini said. "And therefore investors are largely unwilling to make big bets in one direction or another." A volatile week in stocks was highlighted by Wednesday's 9.58 jump for the S&P 500, the index’s biggest one-day rise since October 2008 during the heart of the financial crisis.