Nasdaq enters correction territory while trade policy uncertainty and weak US jobs data weigh on stocks
On Friday, the S&P 500 recovered some ground, rising 0.55 percent to 5,770.20, while the Nasdaq Composite gained 0.7 percent to 18,196.22.
According to CNBC, the Dow Jones Industrial Average added 222.64 points, or 0.52 percent, closing at 42,801.72.
Despite these gains, the market ended its worst week in months, rattled by trade policy developments.
Volatility defined Friday’s session. The Dow dropped more than 400 points at its lowest before staging an afternoon rally.
Both the S&P 500 and Nasdaq fell over 1 percent at their worst points of the day before recovering some losses.
Over the week, the S&P 500 declined 3.1 percent, marking its steepest weekly drop since September.
The Dow lost 2.4 percent, while the Nasdaq Composite fell 3.5 percent, officially entering correction territory by closing 10 percent below its recent high.
Investors reacted to a weaker-than-expected US jobs report released Friday. Nonfarm payrolls rose by 151,000 in February, missing the 170,000 estimate from economists polled by Dow Jones.
The unemployment rate edged up to 4.1 percent. Concerns over economic softening emerged, briefly pushing Treasury yields lower.
Uncertainty around US trade policy added to the market’s turbulence.
On Thursday, US President Donald Trump announced that tariffs on goods from Canada and Mexico covered under the USMCA would be delayed until April 2. This move significantly scaled back the initial tariff plan, which also included China.
However, ongoing policy shifts and a lack of clarity kept investors wary, contributing to the week’s market decline.
“The market does not like uncertainty,” said Glen Smith, chief investment officer at GDS Wealth Management. “While we expect the market to find its footing and recover from the tariff-driven selloff, investors should brace for continued choppiness until these uncertainties clear.”
US Treasury Secretary Scott Bessent, speaking to CNBC on Friday, acknowledged that the US economy might be beginning to “roll a bit.”
He attributed this to a transition from the previous administration’s policies. Bessent also stated that any tariffs imposed would be a “one-time price adjustment” and would not trigger lasting inflation.
