Easing U.S.-China trade tensions and improving risk sentiment helped stabilize major currencies, commodities, and bond yields.

The dollar index slipped below 99 on Friday as renewed trade conflicts between the US and China rattled investors.

The dollar index fell to 97.7, down 0.5% for the week, pressured by growth concerns and labor market weakness. The ongoing government shutdown delayed key data, including nonfarm payrolls, while ISM services stagnated and ADP payrolls fell. Signs of slowdown prompted the FOMC to resume rate cuts, with markets now pricing in two more by year-end.

The euro dropped under $1.17, ending flat for September.

Inflation wording adjusted to “increased,” signaling data-based caution.

Oil gained on renewed supply concerns from Russia, the euro strengthened on ECB signals, and UK data proved lingering growth challenges.

Global markets ended the week under pressure from weak U.S. labor data, which fueled expectations of multiple Fed rate cuts and drove broad dollar weakness.

The dollar strengthened after July’s core PCE rose 0.3%, lifting the annual rate to 2.9%, its fastest since February, reinforcing bets on a September 25 bps Fed cut. Consumer spending saw its strongest rise in four months, underscoring economic resilience despite soft labor data.