New York
CNN
—
US stocks rallied Friday as investors tried to stage a rebound to finish a rocky week, though all three major indexes are still on track to close the week in the red.
The Dow opened higher and surged 580 points, or 1.42%. The broader S&P 500 rose 1.8% and the Nasdaq Composite gained 2.3%.
The rebound comes after a steep decline on Thursday that saw the S&P 500 close in correction territory, down more than 10% from its recent high, for the first time since late 2023.
The benchmark index has shed roughly $5 trillion in market value since its peak in February 19, according to FactSet data.
While the Dow’s gains on Friday pared some of this week’s losses, the blue-chip index as of Friday midday was still down 3.2% this week and on track for its worst week since March 2023.
US stocks rallied on the news that lawmakers would likely pass a government funding plan Friday, avoiding a shutdown. Markets hate uncertainty, and the clarity of dodging a shutdown provided a boost for stocks at the end of a turbulent week.
President Donald Trump’s tariffs have roiled markets this month, and recent drawdowns can also present opportunities for rebounds.
“The markets are grappling with the notion of where fair value rests for a stock market that faces headwinds from tariffs, fiscal spending cuts and potentially softening economic data,” said Yung-Yu Ma, chief investment officer at BMO Wealth Management, in an email.
All three major indexes opened higher Friday and held on to their gains despite a fresh read on consumer sentiment that showed Americans are souring on the economy.
Consumer sentiment fell 11% this month to a reading of 57.9, a preliminary reading showed, down from last month’s reading of 64.7 and reaching its lowest level since November 2022, according to the latest consumer sentiment survey from the University of Michigan.
Stocks driving markets higher on Friday included tech and AI stars like Nvidia (NVDA) and Palantir (PLTR) that were rebounding after a slide in the past month.
Gold on Friday surged to a record high, breaking through $3,000 a troy ounce. Gold prices have soared as investors demand safe havens amid uncertainty around the impact of Trump’s tariffs on global economic growth and geopolitical stability.
Russia’s war in Ukraine is another factor contributing to higher gold prices.
“Russia’s rejection of the US-proposed 30-day ceasefire in Ukraine has reignited geopolitical instability,” said Viktoria Kuszak, a research analyst at Sucden Financial, a trading firm.
Gold is up about 15% this year, far outpacing the benchmark S&P 500, which is down more than 4%.
“Extreme fear” has been the sentiment driving markets since the end of February, according to CNN’s Fear and Greed Index.
