LIVE MARKETS-Wall Street gyrates lower in volatile trade

-0.76%

-0.15%

+0.02%

-0.61%

+9.91%

Wells Fargo & Company WFC	72.83	-0.76%
Morgan Stanley MS	126.07	-0.15%
JPMorgan Chase & Co. JPM	260.71	+0.02%
Dow Jones Industrial Average DJI	41603.07	-0.61%
CBOE Volatility Index	22.29	+9.91%

Main US equity indexes modestly red: Dow off ~0.3%

Apr U Mich sentiment preliminary 50.8 vs 54.5 estimate

Euro STOXX 600 index down ~0.5%

Dollar falls; crude ~flat; gold up >1%; bitcoin up >2%

U.S. 10-Year Treasury yield jumps to ~4.54%

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WALL STREET GYRATES LOWER IN VOLATILE TRADE

Shares on Wall Street are lower early on Friday in volatile trading, as investors continued to grapple with the potential fallout from an escalating trade war with China.

On Friday, China raised its tariffs on U.S. imports to 125%, following a U.S. move to impose duties of 145% on Chinese goods.

"We warned that China would be tough to push around — all anyone needs to know is its history and incredible capacity for pain," writes Dave Rosenberg, founder and president of Rosenberg Research. "As the refrain goes, America packs a powerful punch, but China has a steel-plated chin."

Earlier in the session, stocks drew brief support from bank earnings that were on the whole better-than-expected. JP Morgan Chase JPM.N, Wells Fargo WFC.N, and Morgan Stanley MS.N all beat quarterly earnings estimates.

Another piece of good news -- lower than-expected producer prices data -- didn't really move the needle much for stocks. U.S. monthly producer prices unexpectedly fell in March, coming on the heels of a consumer prices reading which also showed an unexpected decline last month.

But these are all immaterial for investors grappling with renewed inflation in the face of U.S.-China trade conflict.

Further adding to the gloom is a consumer sentiment report from the University of Michigan that screams STAGFLATION: recession expectations and a one-year inflation outlook of 6.7%.

Here is the morning market snapshot:

(Gertrude Chavez-Dreyfuss)

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FOR FRIDAY'S EARLIER LIVE MARKETS POSTS:

NASDAQ COMPOSITE: RIPE TO WRESTLE ITS WAY BACK UP? - CLICK HERE

EVERYTHING EVERYWHERE BUT NOT QUITE AT ONCE - CLICK HERE

FLOORS AND CEILINGS - CLICK HERE

STOXX 600 TURNS LOWER, CHINA RETALIATES AGAIN - CLICK HERE

EUROPE BEFORE THE BELL: FUTURES UP TO END HECTIC WEEK - CLICK HERE

BACK TO WHITE-KNUCKLE RIDE IN THE MARKETS - CLICK HERE

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