Jamie Spencer
Stocks rallied on Friday, recovering some of the week’s steep losses as investors got a break from tariff-related headlines.
The Dow Jones Industrial Average rose 674.62 points, or 1.65%, to close at 41,488.19. The S&P 500 climbed 2.13% to end at 5,638.94, and the Nasdaq Composite advanced 2.61% to settle at 17,754.09. It was the best day of 2025 for both the S&P 500 and the Nasdaq.
Big Tech Leads Market Recovery
Tech stocks that were rattled earlier this week saw a strong rebound. Nvidia shares surged more than 5%, Tesla gained nearly 4%, and Meta Platforms rose close to 3%. Amazon and Apple also saw gains.
Investors welcomed the lack of new tariff-related headlines from the White House, which helped ease concerns about escalating trade tensions. Some investors also took the opportunity to buy stocks after Thursday’s sharp sell-off.
Market Correction and Weekly Losses
Despite Friday’s gains, stocks remain under pressure. A 1% decline on Thursday pushed the S&P 500 into correction territory—down 10% from its record close just 16 days ago. The Nasdaq fell deeper into correction, while the Russell 2000 approached bear market status with a 20% decline from its high.
All three major indexes still ended the week in the red. The Dow fell 3.1%, marking its worst week since March 2023. The S&P 500 and Nasdaq dropped more than 2%, both posting a fourth straight weekly loss.
Consumer Sentiment and Fed Outlook
Adding to the day’s optimism, Senate Minority Leader Chuck Schumer (D-N.Y.) announced he would not block a Republican government funding bill.
However, new data from the University of Michigan showed that consumer sentiment dropped to 57.9, missing expectations of 63.2. Concerns over tariffs have weighed on consumer confidence, contributing to recent market volatility.
Investors are now looking ahead to next week’s Federal Reserve policy meeting. According to the CME FedWatch Tool, markets are pricing in a 97% probability that the Fed will hold interest rates steady.
“We need rates to stay stable,” said Thomas Martin, portfolio manager at Globalt Investments. “If the Fed signals cuts but rates still rise, that would indicate a lack of confidence.”
