The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite saw significant losses this week as investor sentiment soured over escalating trade policy actions and signs of economic weakness. While markets attempted a recovery on Friday, they still posted their worst weekly performance in several months, according to CNBC.
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The S&P 500 rose 0.55% to 5,770.20, while the Nasdaq Composite gained 0.7% to 18,196.22. The Dow Jones Industrial Average added 222.64 points, or 0.52%, closing at 42,801.72. Despite these gains, the broader market remained under pressure, with the S&P 500 losing 3.1% for the week, marking its worst performance since September. The Dow declined 2.4%, while the Nasdaq fell 3.5%, officially entering correction territory—meaning it has dropped at least 10% from its recent peak.
Market Jitters Over Trade Policy and Economic Data
Investor fears were exacerbated by President Donald Trump’s tariff announcements, which initially proposed broad duties on imports but were later revised to temporarily exclude Canada and Mexico under the USMCA agreement. Despite the softened stance, markets remained volatile, as traders worried about long-term trade disruptions and inflation risks.
Adding to market concerns was Friday’s jobs report, which fell short of expectations. Nonfarm payrolls increased by just 151,000 in February, missing the 170,000 forecasted by economists. Meanwhile, the unemployment rate ticked up to 4.1%, signaling potential economic slowing. The data briefly pushed Treasury yields lower as investors reassessed growth prospects.
Uncertainty Keeps Markets on Edge
Volatility dominated the week, with the Dow plunging over 400 points at session lows before Friday’s late rebound. Analysts noted that the market remains uneasy due to uncertainty surrounding trade policies and the lack of clarity on economic direction.
“The market does not like uncertainty,” said Glen Smith, Chief Investment Officer at GDS Wealth Management. “While we expect a recovery, investors should brace for continued choppiness.”
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Adding to the speculation, Treasury Secretary Scott Bessent told CNBC that the economy might be “rolling a bit” due to policy shifts but insisted any tariffs would result in a “one-time price adjustment” rather than prolonged inflation.
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