Dow Jumps 650+ Points in Market Rebound but Records Worst Week Since 2023
Stock Market Sees a Sharp Recovery
The stock market bounced back on Friday, recovering some of the heavy losses from earlier in the week as investors found relief from tariff-related concerns.
- The Dow Jones Industrial Average surged 674.62 points (1.65%) to 41,488.19.
- The S&P 500 rose 2.13% to 5,638.94.
- The Nasdaq Composite jumped 2.61% to 17,754.09.
This was the best trading day of 2025 for both the S&P 500 and the Nasdaq Composite.
Tech Stocks Lead the Comeback
After facing volatility earlier this week, big tech stocks saw strong gains on Friday:
- Nvidia soared over 5%.
- Tesla surged nearly 4%.
- Meta Platforms added close to 3%.
- Amazon and Apple also gained momentum.
Why Did the Market Rebound?
The stock market rallied as there were no new White House updates on tariff policies, calming investor concerns about trade tensions. Traders also took advantage of Thursday’s market dip to buy shares at lower prices.
However, Thursday’s sell-off had already pushed the S&P 500 into correction territory—down 10% from its recent record high. The Nasdaq Composite fell even further, and the Russell 2000 approached a bear market (a 20% decline from its peak).
The market has been under pressure for the past three weeks due to uncertainty over tariffs under President Donald Trump’s administration.
Weekly Losses Despite the Rebound
Even with Friday’s gains, the major stock indexes suffered losses for the week:
- The Dow Jones dropped 3.1%, its worst week since March 2023.
- The S&P 500 and Nasdaq each fell over 2%, marking their fourth straight weekly decline.
Government & Economic Concerns Weigh on Sentiment
Investor confidence also got a slight boost after Senate Minority Leader Chuck Schumer (D-N.Y.) announced that he would not block a Republican funding bill.
However, fresh economic data added to concerns:
- The University of Michigan’s Consumer Sentiment Index fell to 57.9, well below the expected 63.2, reflecting economic uncertainty due to tariff policies.
- Inflation expectations are rising, and the 10-year Treasury yield is climbing.
Federal Reserve Meeting Next Week
Investors are now turning their focus to next week’s Federal Reserve policy meeting. According to CME’s FedWatch Tool, there is a 97% chance that the Fed will keep interest rates steady.
Expert Opinion
“Consumer sentiment is down, inflation concerns are rising, and Treasury yields are increasing. Normally, the market would be falling, but investors are waiting to see if this rally is sustainable,” said Thomas Martin, Portfolio Manager at Globalt Investments.
He added:
- Stable interest rates are key to maintaining market confidence.
- If the Federal Reserve cuts rates, but yields still rise, it could signal a loss of trust in the Fed’s ability to manage the economy.
Final Thoughts
Despite Friday’s rally, the market remains under pressure due to economic uncertainty, tariff concerns, and inflation fears. Investors will closely watch the Federal Reserve’s next move for more clarity on the interest rate outlook.
