NEW YORK — The stock market experienced a tumultuous session on Friday, ultimately closing with gains in an unpredictable conclusion to a challenging week. Investors were deeply concerned about the state of the U.S. economy and remained uncertain of President Donald Trump’s next moves regarding tariffs. The S&P 500 improved by 0.6%, recovering from an earlier dip that reached 1.3%. The index had suffered through a volatile phase, marked by daily swings exceeding 1% for six consecutive days.
The Dow Jones Industrial Average rose by 222 points, or 0.5%, while the Nasdaq composite increased by 0.7%. This erratic week was the harshest for the S&P 500 since September, pushing it to slightly more than 6% below the record high it achieved in the previous month.
Federal Reserve Chairman Jerome Powell alleviated some market anxieties by expressing his belief that the economy is currently stable, and that reducing interest rates isn’t necessary to maintain its momentum. Powell stated he is not compelled to act quickly, and traders, who had been anticipating more than three main rate reductions this year due to disappointing economic reports, seem to take his remarks into account.
He emphasized that proceeding cautiously imposes minimal costs, and thus the economy does not require immediate intervention, advocating for a patient approach. A key jobs report released that morning revealed that the U.S. Labor Department reported a net hiring of 151,000 jobs last month. Although this number fell short of economists’ predictions, it marked an improvement over January’s figures.
Recent surveys had highlighted declining confidence among U.S. businesses and households amid tariff uncertainties, prompting economists to scrutinize Friday’s report for any indication of genuine distress affecting the overall economy and employment landscape. Lindsay Rosner, leading multi-sector fixed income investment at Goldman Sachs Asset Management, suggested the report was not as alarming as anticipated.
However, other economists pointed out the report contained worrisome details that could imply future challenges. For instance, the number of individuals working part-time but desiring full-time positions saw a 10% increase in February compared to January. According to Brian Jacobsen, chief economist at Annex Wealth Management, although the labor market appears robust, closer inspection indicates potential difficulties as spring approaches.
The erratic tariff measures from the White House—initially imposed on trading partners, then partially withdrawn, only to be reinstated—have bred uncertainty among businesses, sparking fears of potential freezes on hiring amidst what some term as operational ‘chaos’. American households, preparing for potential inflation spikes due to tariffs, report diminishing confidence, which could negatively impact their spending and, consequently, the economy. Meanwhile, President Trump indicated his goal of tariffs is to revive domestic employment, offering no hint that market uncertainties will be resolved soon.
He acknowledged there may be economic disruptions but suggested that extending a month’s grace on tariffs for Mexican and Canadian auto imports has provided some relief.
In the bond market, Treasury yields initially declined following the jobs data but rebounded after Powell’s comments tempered expectations for more than three rate cuts throughout the year. The yield on the 10-year Treasury note dropped to 4.22% before rising to 4.30%, an increase from 4.28% the previous Thursday.
While the yield has been on a downward trend since January—when it neared 4.80%—the revised forecast reflects restrained optimism about U.S. economic growth.
On Wall Street, individual stocks experienced significant movements. Walgreens Boots Alliance saw a 7.5% increase after announcing its acquisition by the private equity firm Sycamore Partners, allowing the company to focus on operational changes without the pressure of public market performance. Broadcom jumped 8.6% following stronger-than-expected quarterly profit and revenue, buoyed by demand for artificial intelligence products.
Conversely, Hewlett Packard Enterprises dropped 12% due to quarterly earnings slightly missing analysts’ forecasts, and Costco faced a 6.1% decline after reporting lower-than-expected profits.
In summary, the S&P 500 surged 31.68 points, closing at 5,770.20. The Dow Jones Industrial Average added 222.64 points, ending at 42,801.72, and the Nasdaq composite grew by 126.97 points, concluding at 18,196.22.
Globally, stock markets presented mixed results. Germany’s stocks fell by 1.8% despite recent gains driven by a shift in its stance on debt, indicating a willingness to embrace higher borrowing levels. Other stock exchanges across Europe and Asia also recorded declines.
