Highlights
Stocks recovered a little ground Friday after Federal Reserve Chair Jerome Powell offered reassuring words about the economy's health. The Dow Jones industrial average gained 0.5 percent, the S&P 500 rose 0.6 percent, and the Nasdaq was up 0.7 percent. US bond yields rose, the dollar declined, and oil prices rose.
Despite the modest uptick Friday, stocks were ending the week down 3.3 percent on the S&P 500 as investors were unnerved by a dizzying array of threats and announcements around Trump administration tariff policy. On Friday, Trump threatened new tariffs on Canadian dairy and lumber products. This followed his latest delay Thursday on plans to impose tariffs on many Canadian and Mexican goods.
The Fed's Powell said the economy remained fine and that the Fed was in no rush to alter policy until the outlook becomes clearer. Powell made the comments after a monthly employment report showed ongoing moderate job gains, largely in line with expectations, and certainly better than many traders feared after a string of weak economic reports.
Among sectors, several stocks linked to the AI trade rebounded Friday on bargain-hunting after the shares dropped this week. Broadcom was among the leaders with support from better than expected quarterly results. Walgreens was another big winner on news it would be acquired by private equity.
Despite the modest uptick Friday, stocks were ending the week down 3.3 percent on the S&P 500 as investors were unnerved by a dizzying array of threats and announcements around Trump administration tariff policy. On Friday, Trump threatened new tariffs on Canadian dairy and lumber products. This followed his latest delay Thursday on plans to impose tariffs on many Canadian and Mexican goods.
The Fed's Powell said the economy remained fine and that the Fed was in no rush to alter policy until the outlook becomes clearer. Powell made the comments after a monthly employment report showed ongoing moderate job gains, largely in line with expectations, and certainly better than many traders feared after a string of weak economic reports.
Among sectors, several stocks linked to the AI trade rebounded Friday on bargain-hunting after the shares dropped this week. Broadcom was among the leaders with support from better than expected quarterly results. Walgreens was another big winner on news it would be acquired by private equity.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
