Wall Street closed higher on Friday after another turbulent session, capping off a week of sharp swings driven by economic concerns and uncertainty over U.S. tariffs. The S&P 500 rose 0.6% after initially dropping 1.3%, while the Dow Jones Industrial Average gained 222 points (0.5%) and the Nasdaq composite climbed 0.7%. Despite the rebound, the S&P 500 remains over 6% below its all-time high set last month.
Investor sentiment improved after Federal Reserve Chair Jerome Powell reassured markets that the economy remains stable and that there is no immediate pressure to cut interest rates. Recent data showing weaker-than-expected economic performance had fueled speculation that the Fed might need to cut rates more aggressively.
The latest U.S. jobs report showed an increase of 151,000 jobs in February, slightly below expectations but an improvement from January. However, underlying concerns remain, with a 10% rise in part-time workers seeking full-time jobs. Analysts warn that this trend could signal economic challenges ahead.
Market uncertainty has been exacerbated by the shifting stance of the White House on tariffs. President Donald Trump defended the tariffs, arguing they would bring jobs back to the U.S., but acknowledged that adjustments may be needed. Businesses have expressed frustration over the policy changes, citing difficulties in long-term planning and hiring.
Treasury yields fluctuated throughout the day, initially dropping before Powell’s comments led to a rebound. The 10-year Treasury yield ended at 4.30%, up from 4.28% the previous day.
In corporate news, Walgreens Boots Alliance surged 7.5% after announcing its acquisition by private equity firm Sycamore Partners. Broadcom gained 8.6% following strong earnings and a positive revenue forecast, driven by demand for artificial intelligence-related products. Meanwhile, Hewlett Packard Enterprises fell 12% after missing profit expectations, and Costco dropped 6.1% on weaker-than-expected earnings.
International markets mostly declined, with German stocks falling 1.8% following a shift in the country’s debt policy. European and Asian markets also ended the week on a lower note.
