What a week it has been—a rollercoaster ride through the financial markets, marked by dramatic swings and a palpable sense of unease. US stocks surged on Friday, but the week as a whole was a tale of losses, reflecting the deep anxieties that have come to define the current economic landscape. President Donald Trump’s nascent trade war has cast a long shadow over Wall Street, sending ripples of uncertainty through the markets and leaving investors grappling with a future that feels increasingly uncertain.

The Dow ended the day higher by 675 points, a 1.65% gain, while the broader S&P 500 rose 2.13% and the Nasdaq Composite surged 2.61%. These gains on Friday were impressive, marking the best single-day performance for the S&P 500 and Nasdaq since the US presidential election. Yet, despite this rally, the week as a whole was a story of losses. The S&P 500 and Nasdaq posted their fourth consecutive week in the red, their worst losing streak in seven months. The blue-chip Dow, despite its Friday gains, closed down roughly 3.1% for the week, marking its worst performance since March 2023.

The backdrop to this turbulent week was a steep decline on Thursday, which saw the S&P 500 close in correction territory—a drop of more than 10% from its recent high. This was the first time since late 2023 that the benchmark index had fallen so sharply. From its peak on February 19, the S&P 500 had shed roughly $5.28 trillion in market value by the close on March 13, according to FactSet data. The market’s volatility was a direct response to the uncertainty created by Trump’s tariffs and the broader geopolitical tensions that have come to define the current era.

Amid this turmoil, US stocks rallied on the news that lawmakers were likely to pass a government funding plan on Friday, thus avoiding a shutdown. Markets, as always, abhor uncertainty, and the prospect of averted government chaos provided a much-needed boost. The rally on Friday was a testament to the market’s resilience, but it also highlighted the fragile nature of investor sentiment in these troubled times.

Trump’s tariffs have been a major disruptor this month, roiling markets and creating a sense of unease that has left investors searching for safe havens. Yung-Yu Ma, chief investment officer at BMO Wealth Management, summed up the situation succinctly: “The markets are grappling with the notion of where fair value rests for a stock market that faces headwinds from tariffs, fiscal spending cuts, and potentially softening economic data.” Ma suggested that a “multi-day relief rally could be coming soon,” driven by the sheer amount of negative investor sentiment that has built up in recent weeks. Since the end of February, “extreme fear” has been the dominant sentiment driving markets, according to the Fear and Greed Index.

This week’s gains were driven by a mix of factors. Tech and AI stocks, such as Nvidia (NVDA) and Palantir (PLTR), rebounded after a slide in the past month, providing a much-needed lift to the broader market. Tesla (TSLA), which had plunged earlier in the week, gained 3.86% on Friday, adding to its 3% gain on Thursday. These gains were a bright spot in an otherwise tumultuous week, but they were not enough to offset the broader market losses.

Meanwhile, gold surged to a record high on Friday, breaking through $3,000 a troy ounce. This milestone was not just a reflection of market volatility; it was a clear signal that investors were seeking refuge in the safest of safe-haven assets. Gold prices have soared in recent months, driven by investor demand for protection against the uncertainty created by Trump’s tariffs and the broader geopolitical instability. Former Treasury Secretary Larry Summers captured the essence of this trend when he remarked, “It’s a sign of the amount of uncertainty that’s being created that amidst everything else, the asset that’s done well is gold. That’s what people do when they don’t have confidence in the people who are managing the country.”

Gold prices rallied 27% in 2024, smashing through previous record highs. This surge was driven not only by investor demand but also by central banks, led by China, which have been steadily increasing their gold reserves. The conflict in Ukraine has also played a significant role in driving gold prices higher. “Russia’s rejection of the US-proposed 30-day ceasefire in Ukraine has reignited geopolitical instability,” noted Viktoria Kuszak, a research analyst at Sucden Financial. Gold is up almost 15% already this year, far outpacing the benchmark S&P 500, which is down more than 4%. In February, Goldman Sachs raised its year-end price forecast for gold to $3,100 a troy ounce, a testament to the metal’s enduring appeal in times of uncertainty.

The week’s market performance was also influenced by consumer sentiment, which has taken a hit in recent months. According to the latest consumer sentiment survey from the University of Michigan, consumer sentiment fell 11% this month to a reading of 57.9, its lowest level since November 2022. This decline reflects a growing unease among Americans about the economy, a sentiment that is likely to persist as long as the current geopolitical and economic uncertainties remain.

In conclusion, this week was a microcosm of the broader challenges facing the financial markets. The surge in gold prices, the volatility in stock markets, and the decline in consumer sentiment all point to a climate of uncertainty and unease. Investors are navigating a landscape marked by trade wars, geopolitical tensions, and shifting economic policies. The market’s resilience is evident in its ability to rally despite these challenges, but the underlying anxieties remain. As we move forward, the key question will be whether the markets can find a new equilibrium in this age of uncertainty. For now, gold remains the asset of choice for those seeking stability, a beacon of hope in a world that feels increasingly unpredictable.