Stocks rallied on Friday, clawing back some of the steep losses seen over the week as investors got a reprieve 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, while the Nasdaq Composite advanced 2.61% to settle at 17,754.09. It was the best day in 2025 for both the S&P 500 and the Nasdaq.
Big tech shares rebounded sharply. Nvidia jumped more than 5%, Tesla rose nearly 4%, and Meta gained close to 3%. Amazon and Apple also moved higher.
Stocks recover as tariff concerns ease
Stocks bounced as a lack of new headlines out of the White House on tariffs eased concerns about escalating trade tensions. Some investors were also buying back shares after the steep pullback on Thursday.
Despite Friday’s gains, the three major indexes still posted weekly losses. The Dow dropped 3.1%, marking its worst week since March 2023. The S&P 500 and Nasdaq both fell more than 2%, extending their losing streak to four consecutive weeks.
Consumer confidence weakens
Consumer sentiment data from the University of Michigan confirmed that tariff-related uncertainty has taken a toll on confidence. The sentiment index dropped to 57.9 in March, below expectations of 63.2.
What to watch this week
Looking ahead, the Federal Reserve’s policy meeting this week will be in focus. The central bank is widely expected to keep interest rates steady when it announces its decision on Wednesday. Markets will be watching for signals on when rate cuts might begin.
On Monday, US February retail sales data will be released, giving a fresh look at consumer spending. Economists expect a rebound after a 0.9% decline in January. Other key reports include housing starts on Tuesday, jobless claims on Thursday, and existing home sales.
Earnings season also continues, with reports from Nike, FedEx, and Micron later in the week. Investors will be looking for insights on how businesses are navigating trade tensions and broader economic uncertainty.
In Australia, the Bureau of Statistics will release employment figures on Thursday. These numbers will shed light on the current state of the labour market and may influence sentiment.
The SPI futures are pointing to an 85 point rise.