Wall St rises as Fed comments soothe market after whipsaw week
Big banks launch first-quarter earnings season
White House says Trump open to China tariff negotiations
S&P 500, Nasdaq set for best week since November 2024
Indexes up: Dow 1.41%, S&P 500 1.52%, Nasdaq 1.63%
NEW YORK, – Wall Street gyrated higher on Friday as big banks kicked off first-quarter earnings season and investors closed the book on a turbulent week of wild swings driven by the chaos of U.S. President Donald Trump’s hydra-headed trade war.
All three major U.S. indexes oscillated for much of the session, and were higher after assurances from Boston Federal Reserve President Susan Collins that the Fed is prepared to keep financial markets functioning should the need arise.
All three indexes, whipsawed by a tariff reprieve on European goods and the rapid escalation of the Washington-Beijing trade war, appeared set to advance on the week, with the Nasdaq and the S&P 500 on track for their biggest weekly rise since November 2024.
“Investors are in the midst of this tug of war looking for some positive signs that the uncertainty that’s really been plaguing the market will subside,” said Greg Bassuk, Chief Executive Officer at AXS Investments in New York.
“Uncertainty and volatility is the new investor narrative,” Bassuk added. “The table is set for more volatility ahead and this week’s roller coaster ride could be just foreshadowing for what’s ahead.”
Beijing retaliated to Trump’s recent hike of tariffs to an effective rate of 145%. The trade war has caused wild intraday market swings and driven consumers’ near-term inflation expectations to their hottest level since 1981.
First-quarter reporting period got off to a solid start. JPMorgan Chase, Morgan Stanley and Wells Fargo all reported better-than-expected profits, but warnings of a potential economic slowdown resulting from trade disputes dampened enthusiasm for the sector.
Analysts currently expect aggregate S&P 500 earnings growth of 8.0% for the first three months of the year, less optimistic than the 12.2% growth predicted at the beginning of the quarter, according to LSEG data.
Economic data offered further evidence that inflation continues to cool, with the Labor Department’s Producer Prices index unexpectedly falling by 0.4% last month.
In a separate report, however, consumer sentiment soured further. One-year inflation expectations shot up to 6.7%, the highest level since 1981.
In addition to Collins’ reassurances, New York Federal Reserve President John Williams said the U.S. economy is not entering a period of high inflation and low growth, and the U.S. Federal Reserve will act to keep so-called “stagflation” at bay.
All 11 major sectors in the S&P 500 were last in positive territory, with materials and technology enjoying the largest percentage gains.
The Dow Jones Industrial Average rose 558.61 points, or 1.41%, to 40,152.27, the S&P 500 gained 79.48 points, or 1.52%, to 5,347.53 and the Nasdaq Composite gained 266.95 points, or 1.63%, to 16,654.27.
Advancing issues outnumbered decliners by a 1.73-to-1 ratio on the NYSE. There were 52 new highs and 310 new lows on the NYSE.
On the Nasdaq, 2,635 stocks rose and 1,696 fell as advancing issues outnumbered decliners by a 1.55-to-1 ratio.
The S&P 500 posted one new 52-week high and 5 new lows while the Nasdaq Composite recorded 15 new highs and 132 new lows.
This article was generated from an automated news agency feed without modifications to text.
