Stocks remained relatively unchanged on Friday as Wall Street took a pause following a week of strong performance. Investors assessed global trade developments and inflation data while keeping an eye on market momentum.
The Dow Jones Industrial Average edged up by 3 points, staying near the flatline. Meanwhile, the S&P 500 rose by 0.1%, and the Nasdaq Composite gained 0.2%. Despite the slight movement, the major indexes are poised to close the week higher, with the S&P 500 up 1.5%, the Dow gaining 0.9%, and the Nasdaq advancing 2.3%.
Markets reacted positively on Thursday after President Donald Trump signed a memorandum outlining plans for reciprocal tariffs on countries that impose duties on US products. The absence of immediate tariffs helped boost sentiment, particularly in the technology sector, which saw increased investor interest.
Additionally, economic data on inflation provided some relief. Reports on both the Producer Price Index (PPI) and Consumer Price Index (CPI) earlier in the week suggested a potentially softer reading for the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred measure of inflation, due later this month.
Despite the market’s upward momentum, some analysts remain cautious. Mark Malek, chief investment officer at Siebert, warned that the rally driven by tariff concerns might be short-lived.
“The market could face pressure on Friday. There wasn’t enough clear stimulus to justify Thursday’s late-day surge,” he noted.
Meanwhile, President Trump’s comments on potentially cutting US defense spending by 50% led to a decline in defense stocks on Thursday. While some analysts dismissed the feasibility of such cuts, others acknowledged the historical precedent of significant reductions in military budgets. Wall Street remains skeptical, with many believing that any meaningful cuts would face substantial political and strategic challenges.
At Friday’s opening, stocks showed minimal movement. The S&P 500 remained slightly above flat, the Dow dipped by 0.1%, and the Nasdaq rose by less than 0.1%.
Among individual stocks, Apple had a strong week, gaining 6% amid speculation about new product launches, including a possible fourth-generation iPhone SE integrated with Apple Intelligence. The company also announced plans to incorporate Alibaba’s AI technology into iPhones in China, which could help Apple address competition in that market.
Several stocks made notable moves:
- Moderna fell 5.4% after reporting a larger-than-expected quarterly loss despite revenue exceeding forecasts.
- GameStop surged 7.9% following reports that the company is considering investing in Bitcoin and other cryptocurrencies.
- Informatica plunged 35% after issuing weaker-than-expected guidance.
Overseas, Asia-Pacific markets ended the day mixed. Hong Kong’s Hang Seng Index led gains, surging 3.48%, while Japan’s Nikkei 225 slipped 0.79%. Meanwhile, South Korea’s Kospi and Australia’s S&P/ASX 200 posted modest gains.
A survey by the American Association of Individual Investors (AAII) revealed that bearish sentiment among retail investors has climbed to its highest level since November 2023, reflecting concerns over tariffs and inflation.
CNBC, the Hill, and the Associated Press contributed to this report.
