US markets rallied on Friday, exhibiting a resilience tempered by ongoing anxieties surrounding the stability of the American banking sector. The Dow Jones Industrial Average closed at 46,191 points, marking a 0.5% increase from the previous trading day. The broader S&P 500 reached approximately 6,664 points, also up 0.5%, while the Nasdaq 100 surged to around 24,818 points, reflecting a 0.7% gain.
The market’s positive trajectory was seemingly bolstered by encouraging signals emanating from the US-China trade relationship. President Donald Trump, during a press conference alongside Ukrainian President Volodymyr Zelenskyy, announced plans to meet with Chinese President Xi Jinping in South Korea within a few weeks, stating he maintains “a very good relationship” with his counterpart. This announcement follows earlier comments to Fox News where Trump suggested that tariffs on Chinese goods are not a sustainable long-term policy, a statement widely interpreted as an attempt to alleviate concerns about potential economic fallout.
However, the optimism remains fragile. The rebound follows weeks of heightened uncertainty fueled by fears of a renewed banking crisis, suggesting the market’s reaction is less a signal of genuine confidence and more an opportunistic response to perceived de-escalation of another geopolitical pressure point. Critics argue that relying on trade negotiations to deflect attention from underlying issues within the banking system offers a superficial solution at best.
The euro weakened slightly, trading at $1.1670, while the dollar fetched €0.8569. Gold experienced a significant downturn, with the spot price falling to $4,228 per ounce (-2.3%), equivalent to €116.48 per gram. Conversely, crude oil prices rose, with Brent futures reaching $61.29 per barrel, a 23-cent or 0.4% increase. This fluctuation underscores the continued volatility in commodity markets, heavily influenced by broader geopolitical and economic uncertainties.