Wall Street snapped out of its four-week losing streak on Friday, with the S&P 500 closing slightly higher despite concerns over inflation and a looming trade war between the US and key trading partners.
The index edged up 0.1%, while the Dow Jones Industrial Average gained 0.1%. Technology stocks led the rebound, with Apple and Microsoft posting gains of 2% and 1.1%, respectively. However, some Big Tech companies, including Nvidia and Micron Technology, fell sharply due to concerns over the trade war.
The trade war has been a major factor in recent market volatility, with President Donald Trump setting an April 2 deadline to impose more tariffs on trading partners. Businesses have warned investors about the impact of tariffs, inflation, and uncertainty on costs, leading to a decline in earnings forecasts.
Nike, FedEx, and Homebuilder Lennar were among companies that fell sharply due to weak earnings forecasts. The Federal Reserve held interest rates steady, but some analysts believe this may not be enough to address growing inflation concerns.
The economy remains solid, according to Fed Chair Jerome Powell, but uncertainty is making it difficult to forecast the future. As one analyst noted, “When everybody is pessimistic, that’s when a tiny bit of optimism can move markets pretty strongly.”
The bond market held steady, with Treasury yields remaining unchanged. Airlines were under pressure due to disruptions at Heathrow Airport, but shares in some airlines saw gains. Boeing surged after Trump announced plans to build the Air Force’s future fighter jet.
Overall, the S&P 500 rose 4.67 points to 5,667.56, while the Dow gained 32.03 points to 41,985.35 and the Nasdaq rose 92.43 points to 17,784.05.
Source: https://apnews.com/article/stocks-markets-rates-trump-4c7b6fd3ccd80ba81d76e813c278f803