Major United States averages recovered some ground on Friday but still ended the week in the red as investor concerns over trade policy and economic data drove market volatility.
The Dow Jones Industrial Average added 222.6 points, or 0.5%, to settle at 42,801.7. The S&P 500 climbed 31.7 points or 0.6% to close at 5,770.2, while the Nasdaq Composite advanced 127 points or 0.7% to 18,196.2.
Despite Friday’s partial recovery, the Dow fell 2.4% for the week, the S&P 500 recorded a 3.1% weekly decline, and the Nasdaq Composite dropped 3.5%, officially entering correction territory as it closed 10% below its recent high.
Investors largely shrugged off a weaker-than-expected jobs report released on Friday, as nonfarm payrolls increased by 151,000 in February, falling short of 170,000 expected.
The unemployment rate also edged higher to 4.1%, adding to growing concerns about a potential economic slowdown.
Market turbulence this week was exacerbated by ongoing uncertainty over President Donald Trump’s tariff policies. On Thursday, Trump announced that goods from Canada and Mexico covered by the USMCA trade agreement would be exempt from newly proposed tariffs until 2 April.
While this move scaled back earlier plans for widespread levies on these nations, as well as China, market sentiment remained unsettled due to continued uncertainty surrounding future trade policy.
Federal Reserve Chair Jerome Powell addressed the concerns on Friday, aiming to reassure investors. “Despite elevated levels of uncertainty, the U.S. economy continues to be in a good place”, Powell stated at an event hosted by the University of Chicago.
He also noted that the Fed was in no rush to adjust policy, saying, “We do not need to be in a hurry and are well positioned to wait for greater clarity.”
Treasury Secretary Scott Bessent also weighed in, acknowledging concerns over economic momentum.
In a note to clients, ANZ analysts quoted Bessent as saying there would be a “detox period” as the economy transitions from government-driven stimulus to private sector-led growth.
During an appearance at the Economic Club of New York on Thursday, Bessent also noted that there could be a “one-time price adjustment” as a result of Trump’s tariffs.
On the bond markets, 10-year and 2-year rates were up 0.6% and 0.9% respectively at 4.305% and 4%.
