US stocks closed higher on Friday, capping a third winning week in four and marking another milestone for the market. The S&P 500 rose 0.8%, while the Dow Jones Industrial Average climbed 0.5% and the Nasdaq composite added 1%. Technology companies drove much of the gains, with Nvidia rising 1.1% and Apple gaining 4.2%.
Financial sector stocks also contributed to the market’s upward momentum, with Bank of America gaining 2.4% and Mastercard rising 2.3%. However, some entertainment giants fell sharply after reports of a merger. Paramount Skydance slid 10.5%, while rival Warner Bros. Discovery sank 8%.
The main focus throughout the week has been on President Trump’s trade war and its impact on the US economy. Despite the latest tariff escalation, the market appeared to largely shrug off the news. Fed Chair Jerome Powell has faced increasing pressure from Trump to cut interest rates.
The Fed is set to meet again in September, with many expecting a quarter-point rate cut. Treasury yields edged higher, driven by expectations of an interest rate cut. The economy’s slowdown and inflation concerns have been key drivers of this expectation.
For now, the market remains supported by solid fundamentals. However, fresh headlines on tariffs, economic, and geopolitical risks may challenge investor sentiment in the coming week.
Source: https://apnews.com/article/asia-japan-trump-tariffs-wall-street-8791e464a5eba81d252e976a06614c4b