Wall Street Rebounds but Closes Fourth Straight Losing Week/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street saw a modest rebound on Friday, with the S&P 500 rising 1%, the Dow Jones gaining 241 points, and the Nasdaq climbing 1.3%. However, the late-week rally wasn’t enough to prevent a fourth consecutive losing week, the longest such streak since August. Investors remain concerned about President Trump’s trade policies, consumer sentiment, and inflation expectations.
US Stock Market Weekly Recap Quick Looks:
- Market Rally: The S&P 500 gained 1%, the Dow rose 241 points, and the Nasdaq increased by 1.3%.
- Weekly Losing Streak: Despite Friday’s gains, Wall Street suffered its fourth consecutive losing week.
- Consumer Worries: A University of Michigan survey revealed a decline in consumer sentiment due to economic uncertainty.
- Tech & AI Stocks: Big Tech stocks rebounded, with Nvidia rising 3.1%, trimming its 2025 losses.
- Treasury Yields: The 10-year Treasury yield climbed to 4.29%, reflecting ongoing market volatility.
Wall Street Rebounds but Closes Fourth Straight Losing Week
Deep Look:
Wall Street experienced a partial recovery on Friday as major stock indexes climbed, attempting to regain lost ground after a sharp sell-off. The S&P 500 rose 1%, the Dow Jones Industrial Average added 241 points (0.6%), and the Nasdaq composite jumped 1.3%. Despite the late-week rally, it wasn’t enough to break the market’s downward trend, marking a fourth straight week of losses—the longest such streak since August.
Market Volatility Amid Economic Uncertainty
Investor sentiment remains fragile, with multiple factors contributing to market swings. One major development was the Senate’s move to prevent a partial government shutdown ahead of the midnight deadline. While past shutdowns have had limited long-term effects on markets, any reduction in uncertainty is seen as positive for Wall Street.
However, the dominant source of anxiety remains President Donald Trump’s intensifying trade policies. The administration’s aggressive stance on tariffs and economic restructuring has left businesses and households unsure about the future. Consumers, in particular, are feeling the effects, with confidence levels slipping.
Consumer Sentiment Declines for Third Month
A report from the University of Michigan on Friday showed consumer confidence weakening for the third consecutive month. Concerns about long-term economic stability were cited as the primary reason, with frequent shifts in policy creating an unpredictable environment.
“Many consumers cited the high level of uncertainty around policy and other economic factors,” said Joanne Hsu, director of the survey. “Frequent gyrations in economic policies make it very difficult for consumers to plan for the future.”
Adding to concerns, inflation expectations jumped. The survey found that consumers now anticipate long-term inflation at 3.9%, up from 3.5% last month—the biggest month-over-month rise since 1993. If inflation fears persist, they could influence Federal Reserve policy and weigh further on markets.
Tech Stocks and AI Sector Show Strength
Despite broad market struggles, Big Tech and AI stocks saw gains on Friday, helping to limit losses for the week. Nvidia rose 3.1%, cutting its year-to-date losses to 11.2%. These stocks have faced significant selling pressure in recent weeks as investors questioned whether AI-driven valuations had become overinflated.
Retail stocks also made a notable move, with Ulta Beauty surging 8.7% after reporting better-than-expected earnings. While the company’s future revenue forecasts fell short of Wall Street expectations, executives emphasized caution due to ongoing consumer uncertainty.
Treasury Yields Rise, Reflecting Market Jitters
In the bond market, the 10-year Treasury yield climbed to 4.29% from 4.27% on Thursday. Yields have been volatile since January when they neared 4.80%, fluctuating as investors react to economic data and shifting expectations about Federal Reserve policy. Rising inflation fears and uncertainty around economic growth continue to drive bond market swings.
Global Market Trends
Stock markets overseas followed a similar pattern, with rebounds across major indexes in Europe and Asia. Chinese stocks surged after the National Financial Regulatory Administration ordered financial institutions to support consumer finance and assist struggling borrowers. Hong Kong’s Hang Seng index jumped 2.1%, while Shanghai’s index rose 1.8%.
Economists suggest China’s consumer economy needs a boost to escape its current slowdown, but many argue that more comprehensive reforms—such as wage increases and enhanced social welfare programs—are needed for sustained growth.
Looking Ahead
The market remains on edge as investors weigh economic uncertainty, policy risks, and shifting consumer sentiment. The upcoming weeks will be crucial in determining whether Wall Street can break its losing streak or if volatility continues to dominate. The Federal Reserve’s stance on inflation, potential changes to trade policies, and corporate earnings reports will all play a role in shaping market direction.
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