Market Volatility Looms Amid U.S.-China Trade Uncertainties

U.S. stocks experienced a turbulent session with hopes of easing tariffs, following comments from President Trump. Despite the S&P 500 rallying earlier, uncertainty over trade policies and monetary policy contributed to market fluctuations. The transport and materials sectors faced significant declines amid global economic concerns.

On Friday, U.S. stocks saw initial declines but rebounded after President Donald Trump hinted at possible flexibility regarding tariffs with China. Trump's comments, suggesting forthcoming negotiations with China, provided a glimmer of hope, although uncertainties in trade policies continue to loom over the market.

Amidst recent adjustments in the Federal Reserve's monetary policy, the S&P 500 displayed signs of recovery with a 1% rally mid-week. However, concerns over the economic impact of ongoing trade conflicts persist, contributing to investor apprehensions and affecting stock market stability.

The transport sector particularly suffered, dragging the Dow Jones Transport Index down, compounded by unexpected disruptions at Heathrow Airport affecting global travel. Meanwhile, material stocks decreased significantly, with Nucor Corp noting profit warnings. Despite these fluctuations, Boeing experienced a surge after securing a major defense contract.

(With inputs from agencies.)