Stocks rebounded Friday as investors shopped bargains at the end of a turbulent week. The escalation of President Trump’s trade war has fueled the fear of a recession and absorbed risk appetite.
The Dow Jones industrial average skyrocketed from 674.62 points (1.7%) to 41,488.19. The S&P 500 reached 2.1% and the NASDAQ reached 451 points (2.6%).
The so-called magnificent seven artificial intelligence-related momentum, six of which had reduced the year.
“We’ve seen a lot of effort into making our customers more comfortable,” said Jed Ellerbroek, portfolio manager at Argent Capital in St. Louis, Missouri.
“These stocks have been inadequate in stocks, especially last month, especially due to this flight to safety.”
Still, the S&P 500 and Nasdaq recorded fourth consecutive weekly losses. The Dow fell 3.1% in March 2023 during the week when its biggest weekly percentage fell.
Inflation data encouragement on Wednesday and Thursday overshadowed the shadows this week by increasing uncertainty stemming from Trump’s chaotic policies, including the threat of quotation tariffs on the US’s biggest trading partners.
These uncertainties have led investors to escape from stocks to support safe hull assets, raising gold prices for the first time, exceeding $3,000 per ounce.
“The market doesn’t like tariffs, the added uncertainty that prevents them from planning plans and making decisions,” Ellerbroek added. “Trump is wreaking havoc with his advisor talking about detoxing. It’s unsettling, indecisive, bad for the economy, bad for the stock market.”
These fears were exposed by disastrous reports from the University of Michigan. This indicated that consumer sentiment has plummeted to the most pessimistic levels as inflation expectations for almost two and one year have skyrocketed to 4.9%.
The report reflects other recent downbeat survey data, including a Reuters/Ipsos poll of Americans conducted March 11-12, showing that 57% of survey participants believe Trump’s policy is more harmful than good.
Tesla aims to regain defeat during the price war in the second largest market, up 3.9% following a report on the electric car maker’s plans to create a low-cost version of the bestselling model Y in Shanghai.
Nvidia’s shares were acquired 5.3% ahead of next week’s GPU Technology Conference (GTC).
