Stock Market Update: Wall Street Ends Higher, Breaking Four-Week Losing Streak

Stocks on Wall Street managed to overcome a sluggish beginning on Friday, resulting in a slight increase and marking the end of a four-week decline.

The S&P 500 advanced by 0.1%, concluding the week with a total gain of 0.5%, though it remains down 4.8% for the month.

The Dow Jones Industrial Average also recorded a modest gain of 0.1%, while the Nasdaq Composite saw a more significant rise of 0.5%.

Technology stocks, which initially weighed heavily on the market, rebounded enough to counteract some of the losses felt in other sectors of the S&P 500. Following a tough period recently, this sector had previously experienced strong gains over the last year. The value of technology stocks plays a crucial role in determining market trends.

Among the tech giants, Apple climbed approximately 2%, and Microsoft added 1.1%. Conversely, Nvidia declined by 0.7%, with Micron Technology suffering an 8% drop, the most significant decrease among S&P 500 companies.

The stock market has struggled recently amid concerns over the U.S. economy's direction. Ongoing trade tensions between the U.S. and major trading partners could aggravate inflation, impacting consumers and businesses negatively. Inflation continues to hover above the Federal Reserve's target rate of 2%, complicating the central bank's efforts to manage prices.

President Trump set an April 2 deadline for implementing additional tariffs on trading partners, following previous deadlines that often resulted in delays.

Mark Hackett, chief market strategist at Nationwide, stated, "Investors are confused, but there’s a lot less panic infusing the market." Many businesses have raised concerns about tariffs, inflation, and the resulting uncertainty regarding costs.

Nike saw a sharp decline of 5.5% after it forecasted significant revenue drops for the current quarter, attributing this to geopolitical factors, new tariffs, and decreasing consumer confidence.

FedEx experienced a 6.4% drop following its announcement of expectations for flat to slightly decreased revenue year-over-year, along with a reduction in per-share profit projections.

Homebuilder Lennar fell 4% after its forecast for new orders and average sales prices came in weaker than expected, attributing this to issues such as high interest rates, inflation, and declining consumer confidence affecting the housing market.

High interest rates remain a significant issue for housing as the Federal Reserve maintained its key interest rate in the most recent meeting, considering potential impacts from tariffs and other U.S. policies.

The Fed cut interest rates towards the end of last year due to declining inflation figures but has kept them steady in 2025. Although lower rates can stimulate economic activity, they might also push inflation higher.

Fed Chair Jerome Powell acknowledged the solid state of the economy but emphasized the challenges of making accurate forecasts due to uncertainty.

“With Chair Powell pointing out that the repercussions of tariffs on consumer confidence, economic growth, and inflation remain indeterminate, we might be stuck in this uncertain period until after April 2,” noted Sam Stovall, chief investment strategist at CFRA.

Recent economic indicators regarding home sales, industrial production, and unemployment reaffirmed the perception of a robust economy. However, data on consumer sentiment and retail sales suggested an increase in consumer caution.

Mark Hackett remarked, “We’re in really pessimistic territory. When everyone is pessimistic, even a slight rise in optimism can lead to significant market shifts.”

In the bond markets, Treasury yields remained mostly stable. The yield on the 10-year Treasury climbed to 4.25%, up from 4.23% at the close of the previous day.

The airline sector faced challenges following a power outage at London’s Heathrow Airport, which resulted in its temporary shutdown and affected global travel for many passengers. Ryanair saw a 1.5% decrease in its stock.

Shares of U.S.-based airlines presented a mixed performance; American Airlines gained 1.2%, United Airlines rose by 1.1%, while Delta Air Lines lost 0.4%.

Meanwhile, Boeing saw a notable increase of 3.1% after President Trump announced that the company will manufacture the Air Force's next-generation fighter jet, despite facing scrutiny over safety concerns. In contrast, Boeing's competitor in the defense sector, Lockheed Martin, fell by 5.8%.

Overall, the S&P 500 went up by 4.67 points to close at 5,667.56, the Dow rose by 32.03 points to finish at 41,985.35, and the Nasdaq advanced by 92.43 points to end at 17,784.05.

In international markets, European stocks dipped. The FTSE 100 in Britain lost 0.6% after the Bank of England opted to keep its main interest rate on hold a day earlier. The DAX in Germany slipped by 0.5%, with lawmakers approving a budget that will enhance defense and infrastructure spending.

Stocks, WallStreet, Market, Bonds, Inflation