Wall Street had a mixed bag of results on Friday. After some major ups and downs, it closed the week on a positive note. The recent trading was a rollercoaster ride, driven by concerns about the U.S. economy and uncertainty surrounding tariffs from President Trump.
The S&P 500 index increased by 0.6%, recovering from an earlier drop. This week was particularly volatile for the index, which experienced shifts of over 1% in both directions for six consecutive days.
The Dow Jones rose by 222 points (0.5%), while the Nasdaq climbed 0.7%. Despite this uptick, the S&P 500 still hovered about 6% below its all-time high reached last month.
Market jitters were calmed somewhat by comments from the Federal Reserve’s chair, Jerome Powell. He indicated that the economy appeared stable and there wasn’t an immediate need to lower interest rates. This brought some relief to traders. In recent weeks, many had speculated that the Fed might cut rates multiple times this year due to weak economic reports, but Powell downplayed these fears, suggesting that patience was necessary.
Powell said, “The economy is fine. It doesn’t need us to do anything really. We can wait, and we should wait.” His words reassured the markets, especially after the jobs report released that morning showed employers added 151,000 jobs last month, which was slightly below expectations but better than the previous month.
Despite overall job growth, there were signs of concern. The number of part-time workers who want full-time jobs increased by 10% from January. This could be a worrying trend for the economy.
Uncertainty about tariffs had created a tense environment for businesses. They fear chaos could lead to hiring freezes. Households are also worried about rising costs due to tariffs, which affects their spending confidence.
President Trump stated that he hopes tariffs will bring jobs back to the U.S., but he acknowledged that there could be some economic disturbances. He mentioned giving automakers a one-month reprieve on tariffs for imports from Mexico and Canada.
In the bond market, Treasury yields initially dipped after the jobs report but rose again as traders adjusted their expectations for future interest rate cuts.
In corporate news, Walgreens Boots Alliance saw a significant jump of 7.5% after announcing its acquisition by Sycamore Partners, making it a private entity again for the first time since 1927. This change will allow Walgreens to implement improvements without the pressure from public investors. Broadcom also had a great day, with an 8.6% increase, thanks to better-than-expected profits and strong demand for its AI products.
However, not all companies fared well. Hewlett Packard Enterprises dropped 12% after missing profit expectations, and Costco sank by 6.1% due to disappointing quarterly results.
Overall, the S&P 500 added 31.68 points, closing at 5,770.20. The Dow closed at 42,801.72, up by 222.64 points, while the Nasdaq finished at 18,196.22, gaining 126.97 points.
Internationally, German stocks fell by 1.8%, giving back earlier gains. Most markets in Europe and Asia also ended lower.
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