The U.S. stock market had a tough week, ending lower on Friday and posting its worst performance since September. The S&P 500 rose 0.55% to 5,770.20, the Nasdaq Composite gained 0.7% to 18,196.22, and the Dow Jones Industrial Average added 222.64 points, or 0.52%, to finish at 42,801.72. Friday’s trading was a roller coaster, with the Dow dropping over 400 points at its session low before staging an afternoon rally.
The S&P 500 and the Nasdaq fell more than 1% at their worst points. Despite the recovery, the S&P 500 ended the week down 3.1%, its worst week in several months. The Dow fell 2.4%, and the Nasdaq slid 3.5% for the week, entering correction territory.
The market was shaken by worries over trade policies and a weaker-than-expected jobs report. Nonfarm payrolls increased by 150,000 in February, missing the forecast of 170,000, and the unemployment rate rose to 4.1%. President Donald Trump’s tariff proposals added to investor anxiety about future U.S. economic growth and inflation.
However, Trump said certain goods from Canada and Mexico, covered by the USMCA agreement, would be exempt from the new tariffs until April 2. This change eased some of the initial concerns, but market uncertainty remained.
Market’s tough week on tariffs
“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.”
Treasury Secretary Scott Bessent said the economy might be starting to “roll a bit,” due to a transition from the previous administration’s policies. He stressed that any tariffs would be a “one-time price adjustment” and not cause lasting inflation.
Energy and utilities outpaced the market, each rising more than 2%. Energy stocks benefited from a 1% increase in U.S. crude oil prices, driven by Trump’s threat of new sanctions on Russia to pressure Moscow into ceasefire talks on Ukraine. Utilities, seen as a safe haven amid geopolitical risk, also gained more than 2%.
Hewlett Packard Enterprise (HPE) had a tough day, with shares plummeting nearly 13% after a weak earnings outlook. The company projected adjusted earnings for the fiscal second quarter between 28 cents and 34 cents per share on revenue ranging from $7.2 billion to $7.6 billion, missing analyst expectations. HPE also said it would cut its workforce by 2,500 employees.
This resulted in the stock’s worst day since mid-March 2020 and a weekly loss of 21%, its worst week ever. Investors will look for clarity on trade and economic growth in the upcoming week as they navigate through the recent selloff. Market experts believe that whether the ongoing issues around trade negotiations and tariffs are nearing resolution or just beginning will determine the market’s next moves.
