The S&P 500 closed higher in volatile trading on Friday. But the index still posted its worst week since September. The broad index rose 0.55% to 5,770.20.
The Dow gained 0.7% to 18,196.22. The Nasdaq added 222.64 points, or 0.52%, ending at 42,801.72. Friday saw significant volatility.
The Dow fell more than 400 points at session lows before an afternoon rally. Despite the recovery, the S&P 500 recorded a loss of 3.1% for the week. This was its most substantial weekly decline in months. The Dow fell 2.4%, and the Nasdaq Composite slid 3.5%, entering correction territory. It finished 10% off its recent high.
Nifty declines for 2nd session; Shriram Finance, Hero Motorcorp lead losses
Here's how the markets panned out today!????#Nifty50 #StockMarket #StockMarketIndia pic.twitter.com/YzKjBCuzy6
— ET NOW (@ETNOWlive) March 13, 2025
Nonfarm payrolls increased by 149,000 in February, below the consensus forecast of 170,000. The unemployment rate ticked higher to 4.1%.
Stocks have been on a roller-coaster this week. President Donald Trump’s tariff policies caused investor anxiety about future U.S. growth and inflation. Trump announced that several goods from Canada and Mexico covered by the USMCA would be exempt from new duties until April 2.
This rollback eased fears temporarily.
????Nifty hits 2-week high but closes in red; mainly dragged by IndusInd Bank
Here's how the market panned out this for this week! #Nifty #StockMarket #stockmarketsindia #StockMarketIndia #stockmarkets #StockMarketNews pic.twitter.com/3Dbwgu1bTp
— ET NOW (@ETNOWlive) March 13, 2025
Investors shrugged off a weaker-than-expected jobs report on Friday. The report raised concerns about economic softening. It briefly pushed Treasury yields lower.
But overall, market uncertainty persisted.
The market does not like uncertainty,” said Glen Smith, chief investment officer at GDS Wealth Management. “While we expect the market to find its footing and recover from the tariff-driven selloff, investors should brace for continued choppiness until these uncertainties clear.”
Treasury Secretary Scott Bessent noted that the economy might be “starting to roll a bit” due to a transition from previous administration policies. He added that tariffs would be a “one-time price adjustment” rather than a trigger for lasting inflation.
With today’s additional decline, the S&P is very close to correction territory— that is, down 10% from its recent high of just three weeks ago. The Nasdaq got there last week.
The longer this selloff continues, the more economists will worry about “negative wealth effects”… pic.twitter.com/AcI1JXCLLt— Mohamed A. El-Erian (@elerianm) March 11, 2025
Volatility and steep weekly declines
Stocks finished Friday’s trading session in the green following an afternoon rally. The S&P 500 rose 0.5%, and the Dow added 0.6%.
The Nasdaq jumped 0.7%. However, all three indexes ended the week with losses. In sector news, energy and utilities outpaced the market.
Energy advanced more than 2% on rising oil prices. President Trump threatened new sanctions on Russia to push for ceasefire talks on Ukraine. U.S. crude oil closed about 1% higher at $67.04.
Utilities, considered a hedge against geopolitical risk, rose more than 2%. Hewlett Packard Enterprise (HPE) experienced its worst trading day since 2020. Shares tumbled nearly 13% due to a weak earnings outlook despite topping revenue expectations for the quarter.
HPE announced it would cut 2,500 jobs, or 0.5% of its workforce, contributing to its stock decline. Investors could use some good news after this week’s sell-off.
Looking ahead, they will seek clarity on trade and growth. “Investors will decide – not just next week effectively – they will ask themselves this question on and on: ‘Is this over in terms of negotiations and tariffs, or are we just beginning?'” said Giuseppe Sette, co-founder of Reflexivity. “In the first case, you buy the dip. In the second case, it’s a bear market.”
Image Credits: Photo by Yorgos Ntrahas on Unsplash
