U.S. STOCKS PARE LOSSES; POWELL EMPHASIZES ECONOMIC UNCERTAINTY

U.S. stocks are sharply lower on Friday after China, in response to the Trump administration's sweeping levies, imposed fresh tariffs on all U.S. goods, escalating a global trade war.

Meanwhile, Federal Reserve Chair Jerome Powell said on Friday "While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected."

He added that "The same is likely to be true of the economic effects, which will include higher inflation and slower growth." The remarks pointed to the potentially difficult set of decisions ahead for the central bank.

Earlier in the session, the S&P 500 index SPX was down as much as 16.7% from its February 19 record close, while the Nasdaq composite IXIC was off 22.7% from its December 16 record close. The Dow DJI was down 13.8% from its December 4 record finish.

The indexes have since pared losses some. The SPX is now down 15.8% from its record close.

That said, with the CBOE volatility index VIX now just shy of 40, and on track for its highest daily close since October 2020, the potential for massive swings remains.

Here is a snapshot of where markets stood just shortly after 12:00 p.m. EDT:

(Terence Gabriel)

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FOR FRIDAY'S EARLIER LIVE MARKETS POSTS:

OH, WAS PAYROLLS THIS MORNING? A JOBS REPORT DEEP DIVE

MOST PESSIMISM SINCE FINANCIAL CRISIS BEAR WAS ENDING - AAII

U.S. STOCK FUTURES RATTLED AFTER CHINA RETALIATORY TARIFFS, PAYROLL DATA

DON'T FORGET ABOUT PAYROLLS

BANKS LEAD EUROPEAN SHARES LOWER, STOXX SET FOR BIGGEST WEEKLY FALL IN THREE YEARS

EUROPE BEFORE THE BELL: FUTURES EDGE DOWN AFTER THURSDAY'S SHARP SELL-OFF

WALL STREET HAS MOST TO LOSE FROM TRUST LOST