Wall Street Rebounds Slightly as Tariff Concerns Ease and Fed Stays Patient

U.S. stocks closed with modest gains on Friday, reversing earlier losses after President Donald Trump signaled flexibility on upcoming tariffs and hinted at trade talks with China next week. Trump reiterated his intent to use tariffs to reduce the trade deficit, but his comments eased fears that the duties set for April would heavily impact the economy.

Market sentiment has been volatile amid shifting trade policy signals and uncertainty over the Federal Reserve’s next move. However, the S&P 500 posted a weekly gain of 0.5%, the Dow climbed 1.2%—its best in two months—and the Nasdaq edged up 0.17%, snapping a four-week losing streak for all three indexes.

Friday’s rally followed Wednesday’s boost, when the Fed kept interest rates steady and signaled two potential cuts this year. Fed officials, including Austan Goolsbee and John Williams, emphasized a patient approach, citing the need to assess the economic impact of Trump’s policies.

The Dow rose 32.03 points to 41,985.35, the S&P 500 added 4.67 points to 5,667.56, and the Nasdaq gained 92.43 points to 17,784.05. Earlier, the S&P had dropped as much as 1.06%.

Among corporate movers, FedEx tumbled 6.45% after slashing its outlook, dragging UPS down 1.61%. Nike slid 5.46% on weak revenue guidance, and Nucor sank 5.78% after a disappointing profit forecast. Boeing surged 3.06% after securing a fighter jet contract, while Lockheed Martin fell 5.79%.

Triple witching added to market volume, which hit 21.05 billion shares—well above the 20-day average.

Despite the rebound, market breadth remained weak with decliners outpacing advancers, signaling ongoing caution among investors as earnings season approaches and economic uncertainty lingers.