In New York, major technology stocks pushed Wall Street to a strong close for a volatile week filled with ups and downs driven by President Trump’s ongoing trade conflict.
The S&P 500 increased by 0.7%, extending a robust three-day rally and moving it to within 10.1% of its peak earlier this year. Tech giants like Nvidia contributed to the Nasdaq composite’s leading 1.3% gain.
Despite this tech surge, Wall Street saw more stocks declining than rising within the S&P 500, with the Dow Jones Industrial Average showing only a slight increase of 20 points, or 0.1%.
Alphabet experienced a 1.7% rise in its first day of trading following the announcement of a 50% profit increase in early 2025, surpassing analyst expectations. As a major entity on Wall Street, the stock’s performance significantly influences the S&P 500 and other indices. Nvidia also bolstered the S&P 500’s performance with its 4.3% rise.
However, these gains helped counterbalance Intel’s 6.7% drop despite better-than-expected early-year results. The company cited “elevated uncertainty across the industry” and provided a revenue and profit forecast that didn’t meet analyst projections.
Similar challenges were faced by other companies, such as Eastman Chemical, whose stock fell by 6.2% after releasing an underwhelming profit forecast for the spring. CEO Mark Costa noted that “macroeconomic uncertainty” has intensified, influencing demand for their products amid the tariffs.
Skechers U.S.A. retracted its financial predictions for the year due to “macroeconomic uncertainty” triggered by global trade policies, even though it reported a record revenue quarter of $2.41 billion. The stock saw a 5.3% decline.
Across various sectors, companies are highlighting the difficulties that the uncertainty from Trump’s tariffs has caused in forecasting future financial performance. Stocks recovered from a steep decline earlier in the week, fueled by optimism that Trump might relax his trade approach and reduce critiques of the Federal Reserve, initially unsettling the markets. Investors hope that by easing some tariffs, Trump could prevent a potential recession driven by his trade policies.
Nevertheless, the unpredictable nature of tariffs might be prompting households and businesses to modify spending and delay long-term investments due to rapid economic shifts.
“Business owners are grappling with supply chain adjustments due to tariffs, which poses more than just a distraction,” noted Brian Jacobsen, chief economist at Annex Wealth Management. “This situation could threaten smaller businesses that lack the extensive resources to adapt their supply chains like larger firms.”
Overall, the S&P 500 climbed by 40.44 points to 5,525.21, the Dow Jones Industrial Average rose by 20.10 to 40,113.50, and the Nasdaq composite surged by 216.90 to 17,382.94.
Internationally, European stock indexes experienced slight increases, with mixed results across Asian markets. Tokyo’s Nikkei 225 index rose by 1.9%, while Shanghai saw a minor 0.1% decrease.
In the bond market, Treasury yields further declined, with the 10-year Treasury yield decreasing to 4.25% from Thursday’s 4.32%. Throughout the month, yields have generally fallen, indicating potential declining confidence in U.S. bonds as a secure investment.
As several U.S. economic reports miss expectations, it’s believed that the Federal Reserve may resort to cutting interest rates later this year to boost economic growth.
On Friday, a report highlighted a drop in consumer sentiment in the U.S. for April, though it was not as severe as anticipated. According to the University of Michigan, the consumer expectations for future conditions fell by 32% since January, the most significant decline since the 1990 recession.
Meanwhile, the U.S. dollar maintained its stability against the euro and other major currencies, recovering from earlier unexpected losses that had concerned investors.