US stocks surged to their best day in months on Friday, with the S&P 500 jumping 2.1% as investors sought relief from weeks of volatility. Despite this, the market remains on track for its fourth straight losing week.
The Dow Jones Industrial Average and Nasdaq composite also saw significant gains, with the former rising 674 points or 1.7%, while the latter jumped 2.6%. Analysts attribute this rally to a “relief rally” as investors sought to capitalize on the recent drop in market sentiment.
However, uncertainty remains a major concern, particularly regarding President Trump’s trade policies and their impact on the economy. Ma, chief investment officer at BMO Wealth Management, notes that concerns about tariffs and federal spending cuts are likely to persist for some time.
A preliminary survey by the University of Michigan found consumer confidence dropping for the third month in a row, largely due to uncertainty about economic policies. This has raised fears among investors that consumers may be pulling back on spending, which could have negative effects on companies’ bottom lines.
Despite this, certain sectors saw significant gains, including beauty retailers like Ulta Beauty and technology stocks. The rally was also supported by news from China, where the National Financial Regulatory Administration issued a notice aimed at promoting consumer finance and reducing lending practices.
Treasury yields rose to recover some of their recent losses, driven by concerns about inflation. Economists point to the need for broader reforms in China’s economy to address its stagnation.
Source: https://apnews.com/article/stocks-markets-rates-trump-china-99a47b4146ef7204ea94e0e5e46e5c26