NEW YORK: US equities staged a modest recovery on Friday, after a turbulent week marked by a broad selloff as investors assessed the economic fallout of the Trump administration’s chaotic trade policies, putting major indexes on track for weekly losses.
The technology sector, which bore the brunt of the selloff, spearheaded sectoral gains with a 2.8% rise.
An index tracking banks gained 2.9%, while chip stocks such as Nvidia and Broadcom advanced, aiding the broader chip index’s 3% rise.
“These growth companies that have been selling off these highs, the reality is their valuations were high, but they’re good companies and they’re leading the AI revolution,” said Brian Klimke, chief market strategist at Cetera Investment Management.
“Sometimes, a little selloff is good and they can provide a buying opportunity.”
All three major indices were on track for weekly losses. The benchmark S&P 500 is set for its fourth consecutive week of declines, marking its longest losing streak in seven months.
The investment climate remains clouded in uncertainty due to Trump’s inconsistent tariff strategy. Recent levies on metal imports elicited swift retaliatory actions from Canada and the European Union. The US president has also alluded to the prospect of further reciprocal tariffs in early April.
Several brokerages also downgraded their ratings on US stocks and numerous companies issued cautious forecasts, citing economic worries.
The S&P 500 plunged into correction territory and saw more than $4 trillion in market value evaporate. The tech-heavy Nasdaq had already breached correction thresholds the prior week.
The blue-chip Dow, about 8% shy of its recent record peak, is on the brink of its worst week in two years, should current losses persist.
At 11:58 a.m. ET the Dow Jones Industrial Average rose 615.60 points, or 1.51%, to 41,429.17, the S&P 500 gained 106.20 points, or 1.92%, to 5,627.72 and the Nasdaq Composite gained 410.02 points, or 2.37%, to 17,713.03.
Consumer staples, often seen as faring better in times of uncertainty, was on track for its biggest one-week drop since May 2022 after it came in the crossfire of Trump’s tariff threats.
Stocks dipped briefly earlier in the day after a University of Michigan survey revealed a sharp decline in consumer sentiment for March, with inflation fears mounting.
Investors flocked to safe-haven assets, propelling gold past the key $3,000 barrier for the first time in history.
US-listed shares of bullion miners surged, with Barrick Gold advancing 1.6% and Sibanye Stillwater rising 1.9%.
Tesla added 3.4%. A report said the automaker would make a lower-cost version of its best-selling Model Y in Shanghai, aiming to regain ground lost during a price war in its second-largest market.
The US Senate was on the verge of passing a stopgap spending bill to avert a partial government shutdown.
The central bank’s policy decisions will be closely watched next week. Traders expect the US Federal Reserve to maintain interest rates at its upcoming meeting, according to LSEG data.
Advancing issues outnumbered decliners by a 5.39-to-1 ratio on the NYSE, and by a 3.53-to-1 ratio on the Nasdaq.
The S&P 500 posted one new 52-week high and five new lows, while the Nasdaq Composite recorded 29 new highs and 126 new lows.
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