Stock Market Update: Wall Street's Rollercoaster Week Ends on a High Note

NEW YORK (AP) — On Friday, Wall Street experienced another day of ups and downs but ultimately closed higher, concluding a turbulent week filled with significant market fluctuations. This week was particularly challenging, influenced by fears regarding the U.S. economy and ongoing ambiguity about President Donald Trump's tariff decisions.

The S&P 500 index rose by 0.6%, recovering from an earlier decline of 1.3%. This week was notable as it was marked by a series of swings, with the index shifting more than 1% in either direction for six consecutive days.

The Dow Jones Industrial Average increased by 222 points (0.5%), while the Nasdaq composite gained 0.7%. Despite the gains, the S&P 500 ended the week approximately 6% lower than its all-time high from last month.

Some relief came on Friday afternoon when the head of the Federal Reserve, Jerome Powell, reassured the market that the economy appears stable and that there is no immediate need to cut interest rates.

In recent weeks, traders had been increasingly betting on the Fed needing to reduce its main interest rate more frequently than anticipated due to disappointing economic data. However, Powell countered this speculation, emphasizing that the economy does not require additional intervention from the Fed at this moment.

He stated, “The costs of being cautious are very, very low,” adding that there is no rush to alter interest rates, as “the economy is fine. It doesn’t need us to do anything really. We can wait, and we should wait.”

This message came after the release of a crucial jobs report, which showed employers created 151,000 jobs last month, slightly below economists’ predictions but an improvement from January’s numbers.

Recent surveys had indicated weakening confidence among U.S. businesses and consumers, driven by the unpredictable nature of tariffs imposed by Trump. Economists were keen to see if Friday's report would reflect any real impacts on the economy and job market. Lindsay Rosner, from Goldman Sachs Asset Management, summarized the report by stating, “today’s print wasn’t as bad as feared.”

However, some economists warned that there were troubling details behind the favorable headline numbers. For instance, there was a 10% increase in the number of people working part-time who preferred full-time positions in February compared to January.

Brian Jacobsen, Chief Economist at Annex Wealth Management, remarked, “While the labor market looks healthy at first glance, a deeper look suggests that spring may hold more challenges ahead.”

The chaotic tariff policies from the White House, including rapid changes in exemptions and implementations, have created uncertainty for businesses. Many companies expressed concerns that this instability may cause them to slow hiring and investment. Simultaneously, U.S. households are starting to brace for rising inflation due to tariffs, potentially leading to diminished consumer spending and affecting overall economic growth.

On Friday, Trump announced that tariffs are intended to bring jobs back to America but did not provide clarity regarding future adjustments. He mentioned, “There will always be changes and adjustments,” while acknowledging the temporary one-month pause on certain tariffs for automakers in relation to imports from Mexico and Canada.

In the bond market, Treasury yields initially dropped following the jobs data but rose later in the day as Powell's comments reduced the likelihood of near-term rate cuts. The yield on the 10-year Treasury note fell to 4.22% before rising to 4.30%, up from 4.28% on the previous day. This yield has been declining since hitting nearly 4.80% in January as investors adjusted their expectations for economic growth.

On Wall Street, Walgreens Boots Alliance saw an impressive increase of 7.5% after announcing an agreement to be acquired by private equity firm Sycamore Partners. This move will take the struggling pharmacy chain private for the first time since 1927, allowing it greater flexibility to implement business changes.

Broadcom also enjoyed a rise of 8.6% after reporting better-than-expected profits and revenue for the most recent quarter, along with an optimistic forecast driven by strong demand for its artificial intelligence products.

In contrast, Hewlett Packard Enterprises fell by 12% after its profit report underwhelmed analyst expectations, and Costco sank 6.1% after its quarterly profits also came in weaker than anticipated.

Ultimately, the S&P 500 rose 31.68 points, ending at 5,770.20. The Dow Jones Industrial Average increased by 222.64 points to 42,801.72, while the Nasdaq composite grew by 126.97 points to 18,196.22.

Looking at global markets, German stocks decreased by 1.8%, reversing some gains from earlier in the week due to a significant shift in the country’s approach to borrowing. Many other European and Asian indices also reported declines.

Stocks, Market, Economy