Stocks closed higher on Friday and for the week after one of the most volatile weeks on record.

Tariff news continues to dominate trading. While the U.S. has paused reciprocal tariffs on most countries for 90 days, the levies on China are as high as 145% on some products and 125% on others. China has imposed retaliatory tariffs as high as 125% on the U.S., although, they said they would cap them at that level. (We'll see if that sticks or if they ratchet them up further as the 'trade war' between the two countries does not appear to be easing.)

Although, both countries have indicated they would be willing to negotiate, so far, no formal talks have been scheduled.

Over the weekend, the Trump administration announced exemptions from reciprocal tariffs on smartphones, computers, semiconductors, other electronic components and devices, flat panel TV displays, and solar cells.

That should come as a huge relief to many tech companies.

The market also found relief with last week's inflation reports.

On Friday, a better-than-expected Producer Price Index (PPI ? wholesale inflation) showed progress on inflation continuing. The headline rate fell -0.4% m/m vs. last month's 0.1% and views for 0.2%. The y/y rate eased to 2.7% y/y vs. last month's 3.2% and estimates for 3.4%. The core rate (ex-food & energy) came in at -0.1% m/m, the same pace at last month's -0.1% rate, and under the consensus for 0.3%. The y/y rate eased to 3.3% vs. last month's 3.4% and expectations for 3.6%.

And that came on the heels of Thursday's better-than-expected Consumer Price Index (CPI ? retail inflation), which also showed inflation pressures easing. The headline rate fell -0.1% m/m vs. last month's 0.2% and views for 0.1%, while the y/y rate eased to 2.4% vs. last month's 2.8% and estimates for 2.6%. The core rate (ex-food & energy) was up 0.1% m/m vs. last month's 0.2% and expectations for 0.3%. The y/y rate ticked down to 2.8% vs. last month's 3.1% and the consensus for 3.0%.

After the previous week's better-than-expected Employment report, and last week's better-than-expected inflations reports, the market has something to feel good about. Same goes for the solid earnings estimates for the next four quarters.

The tariff concerns don't seem to be going away anytime soon. Especially when it comes to China.

And the 10% base rate on all other trading partners is still in effect.

But it's quite possible we have seen the worst it can get. And as negotiations, and ultimately deals, with other countries emerge, and possibly a breakthrough with China, the market can get further away from the worst-case scenario pricing it had been factoring in early last week.

We'll get our usual slate of economic reports this week.

But again, tariff news will likely dominate trading. Moreover, we'll see how bonds hold up. While equities staged an impressive comeback last week, the rebound in bonds was less inspiring. But some improvement was better than nothing. Although, further improvement would go a long way in helping to stabilize all aspects of the market.

In the meantime, we'll see if both can build on their-late week gains this week.

See you tomorrow,