Wall Street stocks managed to close slightly up on Friday, breaking a four-week trend of losses.
The S&P 500 edged up by 0.1%, securing a 0.5% rise over the course of the week, although it remains down by 4.8% for the month so far.
The Dow Jones Industrial Average also achieved a minor increase of 0.1%, while the Nasdaq composite climbed by 0.5%.
Technology stocks, which have recently been a significant drag on the market, rebounded to counteract declines elsewhere in the S&P 500. This sector has been central to the market’s recent downturn, a sharp change from the prior year’s upward momentum. Technology stocks hold substantial value on Wall Street, significantly influencing market directions.
Apple’s shares increased by about 2%, and Microsoft saw a 1.1% rise. However, Nvidia experienced a 0.7% drop, and Micron Technology suffered an 8% decrease, marking the steepest decline among S&P 500 stocks.
The stock market has been under pressure due to uncertainties about the U.S. economic future.
Tensions from trade disputes between the U.S. and its major trading partners threaten to exacerbate inflation, impacting both consumers and businesses. Inflation remains persistently above the Federal Reserve’s 2% target. Consequently, tariffs could undermine the central bank’s inflation-lowering efforts.
President Donald Trump has set a deadline of April 2 for imposing additional tariffs on certain trading partners, following various previous deadlines that were often delayed at the last moment.
According to Mark Hackett, Nationwide’s chief market strategist, investors are baffled, though the market shows less panic now.
Companies have warned of potential tariff impacts, inflation, and looming costs uncertainties.
Nike’s shares fell 5.5% following a forecast of reduced revenue this quarter, due to geopolitical tensions, new tariffs imposed by the Trump administration, and decreasing consumer confidence.
FedEx shares dropped by 6.4% after predicting unchanged or slightly lower year-over-year revenue and lowering its profit guidance per share.
Lennar, a homebuilder, faced a 4% decline after issuing a weaker forecast for new orders and average sales prices this quarter. The firm cited high-interest rates, inflation, and lowered consumer confidence as burdens on the already challenging housing market.
High interest rates remain a substantial challenge for the housing market.
During its recent meeting this week, the Federal Reserve maintained its benchmark interest rate, while gauging potential effects from tariffs and shifts in U.S. policy.
Despite cutting interest rates until late last year amidst easing inflation, the Fed has kept them steady in 2025. While lower rates can stimulate the economy, they can also spur higher inflation.
Fed Chair Jerome Powell has noted the economy’s soundness but emphasized the forecasting difficulty due to uncertainties.
Sam Stovall, CFRA’s chief investment strategist, mentioned that with Powell acknowledging the unclear impact of tariffs on consumer confidence, growth, and inflation, the market might remain stagnant until after April 2.
Recent economic data on home sales, industrial output, and unemployment support a sturdy economic outlook, though reports on consumer sentiment and retail sales hint at increasing consumer caution.
Hackett remarked on the pessimistic market sentiment, highlighting that slight optimism can significantly impact markets when general outlooks are grim.
The bond market saw stability in Treasury yields, with the 10-year Treasury yield rising to 4.25% from 4.23% at Thursday’s close.
The airline sector faced difficulties after a fire temporarily shut down London’s Heathrow Airport, affecting hundreds of thousands of travelers. Ryanair Holdings’ shares dipped 1.5%.
American airline shares were mixed: American Airlines saw a 1.2% rise, United Airlines improved by 1.1%, while Delta Air Lines fell 0.4%.
In a notable uptick, Boeing surged by 3.1% after President Trump announced that Boeing would produce the Air Force’s future fighter jets, despite facing ongoing scrutiny regarding safety issues.
Meanwhile, Boeing’s competitor in the defense sector, Lockheed Martin, fell by 5.8%.
Overall, the S&P 500 inched up by 4.67 points, closing at 5,667.56. The Dow added 32.03 points to settle at 41,985.35, and the Nasdaq climbed 92.43 points to 17,784.05.
European markets experienced declines. Britain’s FTSE 100 fell 0.6% after the Bank of England held its principal interest rate.
Germany’s DAX declined 0.5%, as German lawmakers approved a budget to increase defense and infrastructure spending.
