U.S. stocks rose on Friday, reducing their losses at the end of a volatile February. The gains came after an inflation report showed that price pressures eased last month. The Nasdaq gained 1.6% and the S&P 500 rose 1.5%.
The Dow added 1% this week, while the S&P 500 and Nasdaq lost 1% and 3.5% respectively. All three indexes declined in February, with the Nasdaq dropping 4%, its worst month since April 2024. Concerns about the economy and uncertainty around Trump administration policies have weighed on the stock market recently.
Just over a week ago, the S&P 500 reached record highs. Investors were relieved after the Federal Reserve’s inflation data matched economists’ predictions, showing that price pressures decreased in January for the first time in four months.
Stocks rise on easing inflation data
This could ease worries that the Fed won’t be able to cut interest rates this year. However, Trump’s policies remain a wild card and could fuel future inflation, according to economists. The positive mood was briefly interrupted when Trump and Vice President JD Vance argued with Ukrainian President Volodymyr Zelenskyy during an Oval Office meeting.
Zelenskyy reportedly departed without signing an expected mineral rights deal, which was seen as a step towards a ceasefire with Russia. Nvidia shares rebounded about 4% on Friday after plunging over 8% the previous day. Other large-cap tech stocks like Tesla, Apple, Microsoft, Amazon, Alphabet, and Meta Platforms also advanced.
Dell shares slid around 5% despite better-than-expected earnings, while HP dropped nearly 7% after warning about tariffs on China. The 10-year Treasury yield, which impacts borrowing costs, fell to 4.21% from 4.29% at Thursday’s close. Gold futures declined 1% to $2,867 an ounce, and West Texas Intermediate crude oil futures dipped 0.4% to $70.
