Stocks staged a recovery on Friday after a turbulent week marked by widespread selling as investors assessed the economic fallout of the Trump administration's chaotic trade policy and placed key indexes for weekly losses.
In the afternoon trading, the Dow Jones industrial average jumped to 615.60 points (1.51% (1.51%) to 41,429. The S&P 500 scored 2%, while the Nasdaq rose above 400 points, or more than 2.4%.
The technology sector, which took the brunt of sell-offs, led the sector's profits with a 2.8% increase.
Index tracking banks increased by 2.9%, but chip inventory such as Nvidia and Broadcom increased by 3% of the broader chip index.
“These growing companies that are selling these highs, the reality is that they've been well-respected, but they're good companies and are leading the AI revolution,” said Brian Klimke, chief market strategist at Cetera Investment Management.
“Sometimes, they sell out a little better and they can offer a purchase opportunity.”
All three major indices were on track due to weekly losses. The benchmark S&P 500 is set for a 4th consecutive week of decline, marking the longest winning streak in seven months.
The investment environment remains cloudy with uncertainty due to Trump's inconsistent tariff strategy. Recent collections on metal imports have elicited rapid retaliatory actions from Canada and the European Union. The president also hints at a further mutual tariff outlook for early April.
Several brokers also downgraded their valuations of US stocks, and many have issued cautious forecasts citing economic concerns.
The S&P 500 has entered the realm of corrections, with over $4 trillion in market value evaporating. The technology-rich NASDAQ had already violated the correction threshold the previous week.
The Blue Chip Dow, who is about 8% shy of a recent record peak, is on the brink of the worst week of two years if the current losses continue.
A consumer staple, which appears to be common in times of uncertainty, has been steadily progressing through its biggest weekly decline since May 2022 after becoming a crossfire of Trump's tariff threat.
The stock price was temporarily soaked the day after a survey from the University of Michigan revealed a sharp decline in consumer sentiment in March.
For the first time in history, investors pushed gold past a key $3,000 barrier and flocked to safe assets.
Stocks in listed US miners rose sharply, with Barrick Gold rising 1.6% and Sibanye Stillwater rising 1.9%.
Tesla has added 3.4%. According to the report, the automaker is creating a low-cost version of the bestselling model Y in Shanghai, aiming to regain defeat during the price war in the second-largest market.
The Senate was on the verge of passing a suspension spending bill to avoid government shutdowns.
Central bank policy decisions will be closely monitored next week. According to LSEG data, traders hope that the Federal Reserve will maintain interest rates at upcoming meetings.
