U.S. stocks rallied on Friday, closing out a dreary February on a brighter note.
#OnETNOW | "Added pressure of US tariffs on D-Street," says A Balasubramanian, Aditya Birla Sun Life AMC
These are the statements on valuations, US Fed, banks and more 👇@mfbala @abslmf #TrumpTariffs #StockMarket pic.twitter.com/mNjkoVIDh0
— ET NOW (@ETNOWlive) March 4, 2025
The S&P 500 jumped 1.6%, helping to trim its loss for the month, making it the worst month since December instead of April. The Dow Jones Industrial Average rose 601 points, or 1.4%, and the Nasdaq composite climbed 1.6%.
Stock Market LIVE: Sensex down 400 pts, Nifty below 22000; all sectors in red#Sensex #StockMarket #Nfityhttps://t.co/xv7dJLO03J
— ET NOW (@ETNOWlive) March 4, 2025
Much of the recent damage to the market had concentrated on the biggest winners of recent years, such as technology stocks. However, these areas saw a resurgence on Friday, recovering some of their losses. Among the standout stocks, one of the market’s most influential—unidentified in the report—rose 4% following its 8.5% tumble on Thursday.
Bitcoin also made a recovery, bouncing back above $84,000 after falling below $79,000 in the morning.
Three takeaways from quite a day in financial markets:
A sharp fall in US stocks (first chart below) as the White House confirmed a new round of tariffs as of tomorrow on Canada, Mexico (both 25%), and China (10% on top of the prior 10%).
Pushed lower by growth concerns, US… pic.twitter.com/xz6KkZ1aRo— Mohamed A. El-Erian (@elerianm) March 3, 2025
Stocks rose in reaction to U.S. economic data released that morning, which was a mix of encouraging and discouraging trends. Lower energy prices hit Aramco profits and put pressure on Saudi Arabia’s development plans.
World shares declined amidst concerns over President Trump’s tariffs on Canada, Mexico, and China. Reports indicated that China is eyeing U.S. farm exports for retaliation, intensifying the trade tensions. Inflation, however, decelerated slightly across the country and behaved as expected by economists, providing some good news.
U.S. stocks rally to end February
This could allow the Federal Reserve leeway to cut its main interest rate later this year, potentially boosting the economy. So far, the Fed has kept rates on hold due to concerns about inflation.
U.S. household spending decreased in January, a worrisome sign given that strong consumer spending has been instrumental in keeping the U.S. economy out of recession. Despite high interest rates, inflation remains a concern. Tariffs could potentially push living costs higher, exacerbating consumer worries.
On Friday, AES Corp. led the gainers within the S&P 500, rising 11.7% after reporting profits that surpassed analysts’ expectations. CEO Andrés Gluski cited strong demand from AI data centers and new U.S. manufacturing plants.
Signet Jewelers rose 5.2% after Select Equity Group amassed a nearly 10% stake and pushed the board to consider selling the company or other value-boosting actions. On the downside, Dell fell 4.7% despite reporting stronger-than-expected profits, as it missed revenue expectations. The S&P 500 rose 92.93 points to 5,954.50.
The Dow Jones Industrial Average gained 601.41 points to 43,840.91, and the Nasdaq composite jumped 302.86 points to 18,847.28. In the bond market, Treasury yields dipped following the consumer spending and inflation data release, indicating ongoing uncertainty in the economic outlook.
