Stocks rallied on Friday, clawing back some of the steep losses incurred over the week, as investors found relief from tariff-related headlines. The Dow Jones Industrial Average rose 674.62 points, or 1.65%, to close at 41,488.19. The S&P 500 climbed 2.13% to end at 5,638.94, and the Nasdaq advanced 2.61% to settle at 17,754.09.
This was the best day in 2025 for both the S&P 500 and the Nasdaq. Big tech shares, which were rattled earlier this week, saw a sharp recovery on Friday. Apple’s shares popped more than 5%, Amazon gained nearly 4%, and Microsoft rose close to 3%.
#MarketAlert | Many stocks have recovered from over 10% to as much as 24% from March lows
Take a quick look at the top gainers from the recent market slump?#Nifty #StockMarket #StockMarketIndia pic.twitter.com/uD5nGOB0A1
— ET NOW (@ETNOWlive) March 24, 2025
Investors appeared to be scooping up shares after a pullback on Thursday, driven by concerns over new tariffs announced by the White House. Despite Friday’s recovery, the three major averages could not avoid weekly losses. The Dow fell roughly 3.1%, marking its worst week since March 2023.
Stock Market: Investors gain Rs 22.12 lakh crore in 5 days as Sensex zooms 3076 points or 4%#StockMarket https://t.co/q4E0QUcjZd
— ET NOW (@ETNOWlive) March 22, 2025
The S&P 500 and the Nasdaq both dropped more than 2% and posted their fourth consecutive losing week. Adding to Friday’s positive sentiment was a statement from Senate Minority Leader Chuck Schumer (D-N.Y.), related to a Republican government funding bill. However, data from the University of Michigan confirmed ongoing concerns.
Even though the S&P 500's 6.1% decline is the worst start since 2020, the decline isn't unprecedented.@PhilBlancato tells @USAToday that since 1928, there have been 17 years with similar drops, and 10 of those years ended positively. https://t.co/wt6nSsQuyu
— Osaic (@osaic_inc) March 21, 2025
Consumer confidence dropped in March to 57.9, lower than the 63.2 expected by economists polled by Dow Jones. Consumer sentiment came in worse, inflation expectations are rising. You would think that the market would be off.
So a lot of folks are watching to see if this rally has any breadth or legs,” said Thomas Martin, portfolio manager at Globalt Investments.
Relief boosts stock market recovery
Investors are gearing up for a policy meeting scheduled for next week, where Fed funds futures are pricing in a possibility of interest rates holding steady.
Industrials may be down 2% for the year, but Wolfe Research believes the sector still has room to grow. “Internally, it’s not pretty, but there are still encouraging setups to be found, particularly in Machinery,” wrote analyst Rob Ginsberg. He highlighted key positions in transports poised for recovery.
Despite a bounce on Friday, Tesla is on track to extend its historic weekly losing streak. Shares rose around 4% in Friday’s session. However, Tesla has tumbled more than 4% this week, marking its eighth straight down week—a new record.
Shares are now down more than 38% in 2025. Wolfe Research noted on Friday that investors looking for cover during a recession won’t find it in semiconductors. Semiconductor stocks remain cyclical, and we’ve yet to see a semiconductor stock that performs well in the face of a global GDP decline,” said analyst Chris Caso.
Market concerns have led to a sell-off in these stocks, including notable names in artificial intelligence. On Friday, the broad market index recovered, supported by gains in all Eleven S&P sectors. Energy and information technology led the gains with nearly 3% increases.
Financials and consumer discretionary stocks followed with more than 2% increases. Despite Friday’s broad gains, the S&P 500 is still set to close out the week with more than a 2% fall. Shares of data management company Rubrik rose almost 28% during Friday’s session, marking a record percentage increase in a single day.
This adds to the stock’s substantial rise in recent months, experiencing more than a 131% increase in the past few months.
Photo by; Jason Briscoe on Unsplash
