The industrial average Dow Jones increased 601 points, or 1.4%, and the Nasdaq composite climbed to 1.6%.
Much of the recent damage has focused on the largest market winners in recent years, whose momentum has sometimes seemed almost impossible to stop. Supplies flying in anger around artificial intelligence For example, technology crashed abruptly. BitcoinMeanwhile, more than 20%fell from the record.
Many of the beaten markets of the market jumped on Friday to regain some of their losses. Nvidiawhich became one of the most influential shares on the market, it increased 4% after 8.5% fell on Thursday and was the strongest force that raised the S&P 500. Bitcoin bounced above $ 84,000 after falling below $ 79,000 during the morning.
Stocks increased by following economic report Posted in the morning in which they included some encouraging and discouraging trends
The inflation throughout the country slowed down a bit and behaved quite exactly as economists were expected, according to the measure of which federal reserves prefer to use. This is good news for the whole market because it could give the freedom of federal reserves to continue to reduce its main interest rate at some point later this year.
That, in turn, could help the goose economy. The Fed kept the waiting rates this year after decreasing them at the end of last year, largely due to concern about potentially stubborn inflation.
But the report on Friday also stated that US households withdrew their consumption during January. This is dangerous because their strong consumption is the main reason that the American economy has avoided recession despite high interest rates.
Us consumers had already given great hints They are also worried. The inflation is still high, even if it is not as bad as its peak since 2022, and the broad concern is that Tariff announced by Trump could encourage prices for living costs even more.
Wall Street hopes that all the conversation about tariffs are just a tool that Trump uses to negotiate with other countries and that they will eventually withdraw to them, which would mean less pain for the global economy than he was at first afraid.
But recent reports have shown that all conversations have already pushed US consumers to collapse for much more inflation in the future. At some point, such concerns could encourage their behavior, which could withdraw the economy even without a tariff.
All the uncertainty of not only tariffs, but also deregulation and other potential moves, could mean “if the market does not see that Trump is moving towards the market -adapted policies, the level of trust could continue to erode,” wrote economists Bank of America in a report on the Global Bof research.
Of course, much of the fall in January in the consumption of American households could be a simple result of painful cold weather across the country and other anomalies. But there have also been a few growth signals for the US economy, which closed 2024 running with a solid pace.
Most of the S&P 500 shares increased on Friday and led AES after the energy company reported a profit for the last quarter that missed the expectations of analysts. Executive director Andrés Gluski also said he has a strong demand for AI data centers and new US production facilities, and AES has jumped 11.7%.
Signget Jewelers rose 5.2% after the investment company, select Equity Group, collected almost 10% of the owner’s stake in the seller and said that he pushed the committee to sell the company or find another way to increase the price of shares.
They helped to make up for a 4.7% decline for Dell, which for the latest quarter reported to a stronger profit than analysts expected, but were missing on their revenue.
All in all, S&P 500 increased 92.93 points to 5,954.50. The industrial average of Dow Jones received 601.41 to 43,840.91, and Nasdaq Composite jumped 302.86 to 18,847.28.
In the bond market, the treasury again sank with the following consumer consumer information and inflation. The yield of 10-year treasury dropped to 4.20% with 4.26% on Thursday. It fell sharply since last month, as it approached 4.80%, as concerns grew about where the US economy was going.
At the shares abroad, the indexes suddenly fell in Asia, as the worries of tariffs continued.
On Friday, the Chinese Ministry of Trade announced a statement in Protesting Trump’s Decision to double the tariffs on Chinese products to 20%, saying that it violated the rules of international trade and added “The burden of US companies and consumers and undermined the stability of the global industrial chain.”
The indexes fell 3.3% in Hong Kong, 2% in Shanghai, 3.4% in Seoul and 2.9% in Tokyo.
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AP Business writers Matt Ott and Elaine Kurtenbach contributed.
