US stocks surged to their best day in months on Friday, driven by a sudden turnaround after a series of losses. The S&P 500 jumped 2.1%, while the Dow Jones Industrial Average rose 674 points and the Nasdaq composite gained 2.6%. Despite this rally, investors remain cautious due to ongoing uncertainty, particularly related to President Trump’s trade policies.
The Senate’s efforts to prevent a partial government shutdown may have helped alleviate some concerns, but the impact of tariffs and spending cuts on the economy remains uncertain. Investors are also worried about the future outlook for consumers, who have reported declining confidence amid policy changes and economic instability.
A recent survey by the University of Michigan found that consumer sentiment has declined for three consecutive months due to concerns about policy uncertainty. Meanwhile, stocks such as Ulta Beauty and Nvidia rose after reporting better-than-expected earnings, while companies in the AI industry saw gains as their prices rebounded from a recent sell-off.
Global markets also showed signs of recovery, with indexes in Hong Kong and Shanghai rising following China’s National Financial Regulatory Administration’s move to encourage consumer spending. However, economists caution that broader reforms are still needed to address underlying economic concerns.
Treasury yields rose to recover some losses after a recent downturn, but the market remains volatile as investors weigh the impact of ongoing policy changes on the economy.
Source: https://finance.yahoo.com/news/asian-shares-advance-despite-wall-055504310.html