Damian J. Troise, AP Business Wirter
NEW YORK (AP) – US stocks shook a weak start and ended slightly higher. The S&P 500 rose 0.1% on Friday after cutting most of the day. The Dow Jones industrial average rose 0.1%, while Nasdaq composites rose 0.5%. Stocks have lost ground for weeks on uncertainty about the direction of the US economy. The trade war between the United States and its major trading partners is threatening to exacerbate inflation and hurt both consumers and businesses. Nike fell sharply as tariffs and other concerns became heavier on financial forecasts. The Ministry of Finance’s yields are stable.
Stocks fell in Friday afternoon trading, but the losses are soft enough, giving Wall Street the opportunity to snap a four-week winning streak.
The S&P 500 fell 0.2%. The index holds a gain of 0.2% over the week, snapping a four-week winning streak.
The Dow Jones industrial average fell 23 points (0.1%) as of 1:25pm Eastern. Nasdaq composites fell by 0.1%.
Technology stock was the heaviest weight on the market. The sector was at the heart of many recent divestments in the market that reversed from market-driven profits throughout the previous year. Stocks are the most valuable on Wall Street and have a big impact on whether the market acquires or loses the ground.
Nvidia fell 1.1%, while Microsoft fell 0.6%.
Stocks have lost ground for weeks on uncertainty about the direction of the US economy. The trade war between the United States and its major trading partners is threatening to exacerbate inflation and hurt both consumers and businesses. Inflation stubbornly surpasses the Federal Reserve’s 2% target, and tariffs could undermine central banks’ efforts to ease inflation.
President Donald Trump will set an April 2 deadline and impose more tariffs on trading partners. It only involves postponing tariffs, and sometimes following a series of other deadlines set at the last moment.
“Investors are confused, but there’s far less panic injecting into the market,” said Mark Hackett, chief market strategist across the country.
Companies are warning investors of increasing uncertainty about tariffs, inflation and costs impacts.
Nike predicted a sharp decline in revenue for the current quarter, falling to 5.5% after denounced geopolitical dynamics, new tariffs from the Trump administration and unsure consumers.
FedEx has dropped 7.3% after saying it expects revenue to drop slightly from the previous year and expects it to lower its profit guidance per share.
Homebuilder Lennar fell 3.8% after giving investors a forecast that is weaker than forecasts for new orders and average selling price this quarter. It says high interest rates, inflation and consumer trust are waning, and it’s already heavy in the tough housing market.
High interest rates are an important issue for the housing market. The Federal Reserve stabilized benchmark interest rates at its latest meeting this week to assess the potential impacts of tariffs and other US policy changes.
The Fed had cut interest rates while consistently easing inflation by the end of last year, but has remained stable so far in 2025.
Federal Reserve Chairman Jerome Powell admitted that the economy remains solid, but emphasized that uncertainty makes forecasting difficult.
Recent economic reports on home sales, industrial production and unemployment have reinforced the view that the economy is being held strong. However, other reports on consumer sentiment and retail sales reveal a growing attention from consumers.
“We’re in a realm of pessimism,” Hackett said. “When everyone is pessimistic, that’s when a bit of optimism can drive the market quite strongly.”
In the bond market, the Ministry of Finance is almost stable. The 2010 Treasury yield rose to 4.25% from 4.23% in the second half on Thursday.
The airline was under pressure. A fire broke out at London’s Heathrow Airport, causing disruption by shutting down world travel for hundreds of thousands of passengers. Ryan Air Holdings fell 1.9%.
US-based airlines, including American Airlines and United Airlines, were relatively stable.
Boeing, the troubled plane maker, surged 5.5% after Trump said Boeing would build the Air Force’s future fighter jet. For years, the company has faced scrutiny over safety issues.
Boeing’s rival in the defence sector, Lockheed Martin, thwarted 6.8%.
European markets have fallen. The UK’s FTSE 100 fell 0.6% after the Bank of England stabilized its main interest rates a day ago.
German DAX slipped 0.5%. German lawmakers voted for a budget that encourages defense and infrastructure spending.
Jiang Junzhe and Matt Ott contributed to this report.
Original issue: March 21, 2025 10:55am EDT
