Stock Markets Reel as U.S.-China Trade Moves Trigger Volatility and Uncertainty

NEW YORK (Reuters) — Global equity markets experienced sharp swings this week as escalating tensions between the United States and China reignited investor anxiety, with traders scrambling to recalibrate assumptions about growth, trade, and monetary policy.

In U.S. markets, the **Dow Jones Industrial Average** managed to eke out a modest gain of **0.4 %**, while the **S&P 500** fell about **0.2 %** and the **Nasdaq Composite** slid **0.8 %** on Tuesday. The mixed session reflected early optimism that soured into renewed caution amid aggressive rhetoric and tit-for-tat tariff moves. (AP News)

These gyrations follow China’s decision to sanction five subsidiaries of the South Korean shipbuilder Hanwha Ocean in retaliation for U.S. moves targeting maritime trade, a development that rattled investor confidence. (Bloomberg) Meanwhile, both nations activated reciprocal port fees on each other’s shipping operations. (Reuters)

The volatility gauge of choice, the **CBOE Volatility Index (VIX)**, spiked to intraday levels above **22.7**, its highest since May, signaling elevated market “fear.” (MarketWatch) Analysts noted that the VIX has breached its long-term average of ~20 amid renewed uncertainty. (MarketWatch)

On a broader scale, bond markets also responded. Yields on U.S. 10-year Treasuries fell slightly in the session, as investors sought safer instruments in light of equity market jitters. (Reuters) Meanwhile, gold surged above **$4,100 an ounce**, bolstered by safe-haven demand. (Reuters)

Still, positive drivers partially offset the risk narrative. The International Monetary Fund revised up its global growth forecast, offering a marginal counterbalance to trade-driven fears. (Reuters) And in public remarks, Federal Reserve Chair Jerome Powell assessed that the U.S. economy may be on firmer footing than many feared, even as he cautioned there is “no risk-free path” for central bank policy. (Reuters)