S&P 500 posts weekly gain after volatile trading; Nike, FedEx, Lennar warn on consumer weakness
On Friday, Wall Street stocks closed slightly higher, ending a four-week losing streak.
According to BNN Bloomberg, a rebound in technology shares helped counter broader market declines.
The S&P 500 rose 0.1 percent, ending the session at 5,667.56 with a 4.67-point gain. It gained 0.5 percent for the week but remains down 4.8 percent in March.
The Dow Jones Industrial Average added 32.03 points, or 0.1 percent, to 41,985.35, and the Nasdaq composite climbed 92.43 points, or 0.5 percent, to 17,784.05.
Technology stocks reversed early losses and contributed heavily to the session’s gains. Apple increased about 2 percent, Microsoft added 1.1 percent, while Nvidia fell 0.7 percent. Micron Technology recorded the biggest drop in the S&P 500, sliding 8 percent.
These stocks, which hold significant market value, have shifted from last year’s leading gains to recent declines, heavily influencing index performance.
Investors continue to weigh the direction of the US economy amid persistent inflation and tariff uncertainty.
A potential trade war between the US and key partners has raised concerns about price pressures and broader economic impact.
Inflation remains above the Federal Reserve’s 2 percent target, and the introduction of tariffs could disrupt the central bank’s efforts to control price growth.
US President Donald Trump set April 2 as the next deadline for implementing more tariffs. Previous deadlines have been postponed, often at the last minute.
“Investors are confused, but there’s a lot less panic infusing the market,” said Mark Hackett, chief market strategist at Nationwide.
Several companies issued warnings about the effects of tariffs, inflation, and weakening consumer confidence.
Nike dropped 5.5 percent after projecting a sharp revenue decline for the current quarter. The company attributed the outlook to “geopolitical dynamics, new tariffs by the Trump administration and a less confident consumer.”
FedEx shares fell 6.4 percent after the company revised its guidance, stating it expects flat to slightly lower revenue year-over-year and lowering its earnings forecast per share.
Lennar declined 4 percent after forecasting weaker-than-expected new orders and average sales prices.
The homebuilder cited high interest rates, inflation, and declining consumer confidence as factors affecting the housing market.
The Federal Reserve kept interest rates unchanged at its most recent meeting while evaluating potential effects from tariffs and broader policy changes.
Although the Fed reduced rates through the end of last year due to falling inflation, it has maintained steady rates so far in 2025. Lower rates typically support economic growth but may also contribute to inflationary pressures.
Fed Chair Jerome Powell acknowledged the economy remains solid but cautioned about forecasting challenges.
“With Fed Chair Powell acknowledging that the effect of tariffs on consumer confidence, economic growth and inflation remain unknown, we might be in this below-water holding pattern until after April 2,” said Sam Stovall, chief investment strategist at CFRA.
Recent economic data offered mixed signals. Reports on home sales, industrial production, and unemployment pointed to resilience, while consumer sentiment and retail sales revealed growing caution.
“We’re in really pessimistic territory,” Hackett said. “When everybody is pessimistic, that’s when a tiny bit of optimism can move markets pretty strongly.”
In the bond market, Treasury yields mostly held steady. The 10-year Treasury yield rose slightly to 4.25 percent from 4.23 percent Thursday.
Airline stocks showed mixed results after a power outage from a fire shut down London’s Heathrow Airport, disrupting international travel for hundreds of thousands.
Ryanair Holdings declined 1.5 percent. Among US-based airlines, American Airlines rose 1.2 percent, United Airlines gained 1.1 percent, and Delta Air Lines slipped 0.4 percent.
Boeing shares rose 3.1 percent after Trump said the company would build the US Air Force’s future fighter jet. Lockheed Martin, another major defence contractor, dropped 5.8 percent.
European markets closed lower. The UK’s FTSE 100 lost 0.6 percent after the Bank of England kept its main interest rate unchanged the previous day. Germany’s DAX declined 0.5 percent as lawmakers approved a national budget that will raise spending on infrastructure and defence.
