Wall Street trades firm even as inflation jitters and US-China tariff tensions loom

here was a hint of optimism as the European Union announced its trade representative would travel to Washington on Sunday in a bid to strike new deals.

U.S. stocks traded with firm gains during mid-day on Friday, wrapping up one of the most turbulent weeks in recent memory as investors digested inflation fears and the latest round of tariff volleys between Washington and Beijing.

The S&P 500 inched up 0.6 percent, the Nasdaq Composite gained 0.8 percent, while the Dow Jones Industrial Average rose half a percent.

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Markets briefly turned lower midday after consumer sentiment data for April came in weaker than expected, with the University of Michigan survey also showing inflation expectations at their highest level since 1981 — unsettling news for a market already on edge.

Fueling the volatility was the White House decision to impose a flat 10 percent tariff on most imports but slapped a steep 145 percent duty on Chinese goods. In response, Beijing hiked tariffs on U.S. products to 125 percent, calling the U.S. move "a joke in the history of the world economy."

The week had already been marked by dramatic swings. On Wednesday, stocks staged a historic rally after President Donald Trump announced a 90-day pause on some of his proposed "reciprocal" tariffs. The S&P 500 soared 9.5 percent in its third-biggest daily gain since World War II, and the Dow surged more than 2,900 points. But sentiment reversed sharply on Thursday, with the S&P 500 dropping 3.5 percent, the Dow sliding over 1,000 points, and the Nasdaq tumbling 4.3 percent.

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The CBOE Volatility Index, or VIX, spiked above 50 earlier this week before easing to around 43, reflecting the heightened uncertainty.

Meanwhile, there was a hint of optimism as the European Union announced its trade representative would travel to Washington on Sunday in a bid to strike new deals.

Despite the turmoil, the major indexes are set to post strong weekly gains. The Nasdaq is up nearly 5 percent, the S&P 500 is tracking a 3.3 percent rise, and the Dow is headed for a 2.7 percent weekly advance. Still, markets remain sharply lower since April 2, when the White House unveiled its reciprocal tariff plan — with the S&P 500 down more than 7 percent since then.