The stock market closed higher on Friday, breaking a four-week losing streak. The S&P 500 edged up 0.1%, finishing the week with a 0.5% gain, although it remains down 4.8% for the month. The Dow Jones Industrial Average also eked out a 0.1% gain, while the Nasdaq composite rose 0.5%.
Technology stocks, which initially weighed heavily on the market, bounced back to offset declines in other sectors of the S&P 500. Apple rose about 2%, and Microsoft added 1.1%. However, Nvidia fell 0.7%, and Micron Technology slid 8%, the biggest decline among S&P 500 stocks.
Uncertainty about the direction of the U.S. economy has been causing stocks to lose ground. A trade war between the U.S. and its key trading partners threatens to worsen inflation and hurt both consumers and businesses. Despite efforts by the Federal Reserve, inflation remains above its 2% goal.
Businesses have been warning about the impact of tariffs, inflation, and geopolitical dynamics on costs. Nike slumped 5.5% after forecasting a steep revenue decline, citing new tariffs and a less confident consumer. FedEx tumbled 6.4% after forecasting flat to slightly down revenue year-over-year and lowering its profit guidance.
Homebuilder Lennar fell 4% after giving a weaker-than-expected forecast for new orders and average sales prices. The Federal Reserve has been holding its benchmark interest rate steady, following rate cuts last year amid easing inflation. Lower rates can bolster the economy but also risk pushing inflation higher.
Stock market ends losing streak
Fed Chair Jerome Powell has highlighted the difficulty of forecasting due to uncertainty. Economic reports on industrial production have reinforced views of a strong economy, although consumer sentiment reports show rising caution.
“We’re in really pessimistic territory,” said Nationwide Chief Market Strategist Mark Hackett. “When everybody is pessimistic, a tiny bit of optimism can move markets strongly.”
In the bond market, Treasury yields mostly held steady. The yield on the 10-year Treasury rose to 4.25% from 4.23% late Thursday.
Airlines faced mixed results. A fire at London’s Heathrow Airport disrupted travel for thousands. Ryanair Holdings fell 1.5%.
Among U.S.-based airlines, American Airlines rose 1.2%, United Airlines added 1.1%, and Delta Air Lines fell 0.4%. Boeing surged 3.1% after news that it will build new aircraft models, despite ongoing scrutiny over safety issues. Boeing’s rival in the defense sector, Lockheed Martin, slumped 5.8%.
All told, the S&P 500 rose 4.67 points to 5,667.56. The Dow gained 32.03 points to 41,985.35, and the Nasdaq rose 92.43 points to 17,784.05. European markets fell, with Britain’s FTSE 100 shedding 0.6% and Germany’s DAX slipping 0.5%.
German lawmakers voted to boost defense and infrastructure spending.
