American stocks switched back to positive territory on Friday as investors assessed the possibility of a reduction in the trade conflict. China imposed higher retaliatory tariffs on the US but hinted that it would not elevate tariffs any further.

The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all recorded gains. China announced a tariff increase on US imports to 125%, up from the previously planned 84%, effective immediately. This move was a response to the US's escalating tariffs on Chinese goods. However, China indicated it would not react to further US tariff hikes.

Major banks like JPMorgan, Wells Fargo, and BlackRock unveiled their first-quarter earnings on Friday. Their stocks saw slight increases post the earnings reports, closely monitored for indications of impact from the tariff situation.

President Trump's rapid tariff decisions caused stock market turbulence throughout the week. Despite the market's ups and downs, US indexes are set to have their best week in months primarily due to mid-week gains. The volatility has also influenced Treasury yields, the dollar index, and gold prices.

Later in the day, investors will receive the March Producer Price Index figures for more insight into pre-tariff inflation trends.