Stock Market Recovers but Posts Heavy Weekly Losses
The Dow Jones Industrial Average surged 674.62 points (1.65%) on Friday, closing at 41,488.19 as investors took a breather from tariff concerns. The S&P 500 jumped 2.13% to 5,638.94, while the Nasdaq Composite soared 2.61% to end at 17,754.09. This marked the best trading day in 2025 for both the S&P 500 and Nasdaq.
Tech Stocks Lead the Recovery
After facing sharp losses earlier this week, big tech stocks rebounded strongly:
Nvidia surged over 5% Tesla climbed nearly 4% Meta Platforms gained close to 3% Amazon and Apple also saw significant gains
Market Boosted by Reduced Tariff Concerns
Stocks bounced back after a lack of new tariff announcements from the White House, temporarily easing investor worries about trade tensions. Additionally, many traders took advantage of lower stock prices following Thursday’s pullback.
On Thursday, a 1% decline pushed the S&P 500 into a correction (a 10% drop from its record high just 16 days ago). The Nasdaq deepened its correction, while the Russell 2000 neared a bear market (a 20% drop from its peak).
Weekly Losses Despite Strong Friday Rally
Despite Friday’s gains, the Dow suffered a 3.1% weekly decline—its worst since March 2023. Both the S&P 500 and Nasdaq fell over 2%, marking their fourth straight week of losses.
Government Stability Adds to Market Optimism
Senate Minority Leader Chuck Schumer (D-N.Y.) assured that he would not block a Republican funding bill, boosting investor confidence. However, economic data continued to show signs of strain.
Consumer Sentiment Drops Below Expectations
A report from the University of Michigan on Friday revealed that consumer sentiment dropped to 57.9 in March, below the expected 63.2, reflecting rising inflation fears and economic uncertainty.
All Eyes on Federal Reserve Policy Meeting
Investors now shift their focus to next week’s Federal Reserve meeting, where markets predict a 97% chance that interest rates will remain unchanged, according to CME’s FedWatch Tool.
“If the Fed signals rate cuts but yields rise, it would indicate a loss of market confidence,” said Thomas Martin, portfolio manager at Globalt Investments.
Key Takeaways:
Dow jumps over 650 points but posts worst week since 2023 Tech stocks rebound after a tough week Investor relief from tariff concerns fuels the rally Consumer confidence drops amid inflation fears Federal Reserve decision next week will be a key market driver
