New York City – Stocks on Wall Street closed slightly higher Friday after shaking off a weak start, putting an end to a four-week losing streak. The S&P 500 saw a modest increase of 0.1%, ending the week with a gain of 0.5%. However, the index remains down by 4.8% for the month so far. The Dow Jones Industrial Average also saw a slight gain of 0.1%, while the Nasdaq composite rose by 0.5%. Technology stocks, which had been the main drivers of recent market losses, rebounded to offset declines in other sectors of the S&P 500.
Throughout the trading day, Apple rose by about 2%, and Microsoft saw a 1.1% increase in stock prices. On the other hand, Nvidia dropped by 0.7%, and Micron Technology experienced the biggest decline among S&P 500 stocks, falling by 8%.
Stocks have been on a downward trend due to uncertainty surrounding the direction of the U.S. economy, exacerbated by the ongoing trade war with key trading partners. The threat of increased inflation and its potential impact on consumers and businesses continues to weigh on the market.
President Donald Trump has imposed a deadline of April 2 for more tariffs on trading partners, adding to the uncertainty in the market. The anticipation of these tariffs has led to caution among investors, although panic seems to have subsided slightly.
Businesses have been vocal about the potential negative effects of tariffs and inflation on costs, with several companies revising their forecasts. Nike, for example, forecasted a significant revenue decline in the current quarter due to geopolitical dynamics and new tariffs. FedEx and Lennar also adjusted their revenue and profit guidance, citing various economic challenges.
The Federal Reserve has been closely monitoring the impact of tariffs and interest rates on the economy. While interest rates have remained steady for now, the uncertainty surrounding economic policies remains a concern for investors. Economic reports on home sales, production, and unemployment have shown a positive outlook for the economy, but consumer sentiment and retail sales reports suggest growing caution among consumers.
Overall, the market remains volatile due to various economic factors and policy uncertainties. While some sectors have seen gains, others continue to face challenges, reflecting the broader economic landscape.