Stock Markets Rebound Despite Consumer Sentiment woes
The S&P 500 climbed 0.7% on Friday, wrapping up a robust week. The index surged 5%, marking its best performance as November 2023. This rally was driven by tech stocks and easing trade tensions.
The Nasdaq Composite rose 0.5%, and the Dow Jones Industrial Average gained 331 points, or 0.7%.for the week, the Nasdaq soared over 6%, while the Dow climbed 3%. What sparked this surge?
Markets rallied earlier in the week after U.S. and Chinese officials agreed to a 90-day tariff pause.This eased fears of escalating trade friction. Tech stocks led the charge, with Nvidia up 15%, Meta up 7%, and Apple and Microsoft also gaining.
Though, Friday’s rally lost steam after the University of Michigan’s consumer sentiment index fell to 50.8, its second-lowest ever. Inflation expectations for the next year hit 7.8%, the highest since 1981.
Some analysts, like Jamie Cox of Harris Financial Group, downplayed stagflation fears. He noted that consumer spending remains strong despite inflation concerns.
President Trump added uncertainty by hinting at new tariff letters to countries. Despite mixed signals, Wall street ended the week on a high note. The S&P 500 logged a five-day winning streak and recouped its year-to-date losses. Investors now await upcoming trade moves and inflation data.
