The S&P 500 closed higher for the fourth day in a row on Friday. It gained 4% for the week as investors watched the changing global trade situation. Major tech stocks helped drive the market’s performance.
The S&P 500 rose 0.74% to 5,525.21. The Nasdaq added 1.26% to close at 17,282.94. The Dow Jones Industrial Average closed 0.05% higher at 40,113.50, up 20 points.
Alphabet shares rose 1.5% after a strong first quarter report. Microsoft gained 9.8% and Amazon climbed 4.3%. This was the second positive week out of the last three.
The S&P 500 gained 4.6% and the Nasdaq rose 6.7%. The Dow advanced 2.5% for the week. But the S&P 500 is down 1.5% for April so far.
The Dow has fallen 4.5% this month. Recent weeks have seen spikes in market volatility due to mixed messages on trade policies. President Donald Trump’s tariffs from early April have caused big swings.
China says there are no current trade talks with the U.S. This is despite signs the U.S. might soften its stance. Jay Hatfield of InfraCap thinks the worst of the tariff uncertainty is over.
Stocks gain despite trade uncertainty
“The confusion about whether there are really talks going on with China or not took some steam out of the market. Our view is that we’ve reached peak tariff tantrum and so it’s likely to be more positive than negative,” he said. Deutsche Bank wrote that markets are recovering but U.S. stocks have seen lasting damage.
Jim Reid, the firm’s global head of macro research, said, “The performance of the ‘Magnificent Seven’ tech titans will be of the utmost importance.”
Piper Sandler added that major tariff deals seem unlikely soon. “Trump has always been and remains the driver of the trade agenda. There are likely to be few, if any, comprehensive deals with our major trading partners over the next couple of months,” the firm noted.
First quarter corporate earnings have topped expectations so far. Earnings are 7% above estimates and revenues are 1% above consensus. But many companies have issued downbeat outlooks for the second quarter citing the economy and trade policy.
Citi believes the market is stabilizing. “As long as the momentum of trade deals is consistently positive and monetary policy becomes more supportive, equities should continue to stabilize and grind higher for now,” the firm wrote. In other news, Palantir shares jumped over 3% Friday for a nearly 19% weekly gain.
Dan Loeb’s Third Point has taken a stake in Kenvue, sending its shares up more than 2%. The VIX index, which measures market volatility, fell for a fourth day to its lowest level since early April when the U.S. raised tariffs. The VIX’s recent decline points to calmer investor sentiment compared to earlier this month.
The stock market has shown strength with big gains this past week despite economic and policy challenges. Investors are watching trade developments and corporate earnings, which will likely impact the market in coming weeks.
