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Indexes: Dow down 0.08%, S&P 500 flat, Nasdaq up 0.23%

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JPMorgan ( JPM ) up after beating quarterly profit estimates

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Beijing increases tariffs on US imports to 125%

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S&P 500, Nasdaq set for best week since November 2024

(Updates with afternoon trading levels)

By Shashwat Chauhan and Purvi Agarwal

April 11 (Reuters) - Wall Street's main indexes were

muted in choppy trading after China increased its tariffs on

U.S. imports to 125%, escalating a trade war that has hit global

markets recently, while results from big Wall Street banks set

the earnings season rolling.

Stocks fell briefly on Friday after data showed U.S.

consumer sentiment deteriorated sharply in April and 12-month

inflation expectations surged to the highest level since 1981

amid unease over escalating trade tensions.

China retaliated after U.S. President Donald Trump on

Thursday doubled down on the country by increasing tariffs to an

effective rate of 145%, even as he announced a 90-day tariff

reprieve on most trading partners.

Stocks have been on a roller-coaster ride in response to

tariff announcements over the past few days. Wall Street fell

for four straight sessions, before bouncing back on Wednesday

with the S&P 500 seeing its largest one-day percentage

jump since October 2008.

Stocks, however, slumped again on Thursday and were about 7%

off from levels seen before last week, when Trump's "reciprocal"

tariffs sparked the market rout.

St. Louis Fed President Alberto Musalem said it's now closer

to his "baseline" view, rather than just an outside risk, that

the labor market will soften even as inflation rises due to

tariffs.

"Tariffs are likely to lead to a global slowdown, that's now

inevitable because of the effect on confidence and the near-term

effects on the actual economy," said Kiran Ganesh, multi asset

strategist at UBS Global Wealth Management.

Meanwhile, JPMorgan Chase ( JPM ) gained 2.5% after beating

first-quarter profit estimates, while Morgan Stanley ( MS ) fell

about 1% after reporting quarterly results. Wells Fargo ( WFC )

lost 3.7% after the lender lowered its full-year net interest

income expectations.

Despite beating first-quarter profit estimates, executives

at the banks warned that sweeping tariffs could fuel risks and

weigh on economic growth.

At 11:42 a.m. ET, the Dow Jones Industrial Average

fell 32.12 points, or 0.08%, to 39,561.54, the S&P 500

lost 0.24 points to 5,267.81, and the Nasdaq Composite

gained 37.75 points, or 0.23%, to 16,425.06.

Megacap and growth stocks were mixed, with Meta Platforms ( META )

down 1.6% and Apple ( AAPL ) gaining 2.2%.

The CBOE Volatility index, seen as Wall Street's fear

gauge, was last at 43.59 points - hovering near its highest

level since August.

Still, all three major Wall Street indexes are set for

robust weekly gains, with the Nasdaq and the S&P 500 on track

for their best weekly showing since November 2024.

Investors sought refuge in traditional safe-haven assets

such as gold, with the rally in the precious metal

lifting gold miners. Newmont ( NEM ) and U.S.-listed shares of

Barrick Gold ( GOLD ) rose 8.3% and 6.2%, respectively.

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.

Declining issues outnumbered advancers for a 2-to-1 ratio on

the NYSE and a 1.61-to-1 ratio on the Nasdaq.

The S&P 500 posted no new 52-week high and five new lows,

while the Nasdaq Composite recorded 10 new highs and 117 new

lows.