Stocks Climb at End of Dizzying Wall Street Week: Markets Wrap

(Bloomberg) — A bounce in US stocks calmed nerves among equity investors, but the fallout from Donald Trump’s political maneuvering continued to shake global markets and rattle US consumers. Yields on German bonds surged as government leaders agreed on a massive defense spending package, while the ultimate haven asset — gold — topped $3,000 for the first time.

Equities rebounded after a selloff that drove the S&P 500 down 10% from its all-time high, holding firm even after a report showed consumer confidence slid to lowest in more than two years. Treasuries joined their German counterparts lower, trimming a rally fueled by a flight to safety. Bullion climbed as much as 0.4% to $3,001.20 an ounce on Friday.

The moves capped a week of drama that included Trump’s on-and-off-again tariffs, recession calls, geopolitical talks and concerns over a US government shutdown.

“The markets are grappling with the notion of where fair value rests for a stock market that faces headwinds from tariffs, fiscal spending cuts, and potentially softening economic data, said Yung-Yu Ma at BMO Wealth Management. “Negative investor sentiment is building, so a multi-day relief rally could be coming soon.”

The S&P 500 rose 1.2%. The Nasdaq 100 climbed 1.7%. The Dow Jones Industrial Average added 0.8%.

The yield on 10-year Treasuries advanced five basis points to 4.31%. The Bloomberg Dollar Spot Index fell 0.1%.

It took just 16 trading sessions for US stocks to tumble into a correction, leaving a frazzled Wall Street asking just how long the “adjustment period” White House officials have warned about will last.

In the prior 24 instances when stocks have fallen at least 10% from a record but avoided a bear market, it has taken an average of eight months to reclaim an all-time high, according to data from CFRA Research. That would leave the Feb. 19 high intact until mid-October. The average drawdown reached 14% in those cases.

“We say this is a correction, not a bear market in US stocks,” Bank of America Corp.’s Michael Hartnett said. “Since equity bear threatens recession, fresh declines in stock prices will provoke flip in trade and monetary policy.”

Global stock funds recorded about $2.8 billion in outflows in the week through March 12, the biggest redemption this year, according to the note from BofA citing EPFR Global. That still only represents a small portion of the $156 billion in inflows so far this year, Hartnett said.

Yet a century-old indicator that has helped predict the direction of the US stock market is signaling more pain ahead for battered investors.

Known as the Dow Theory, it holds that moves in the Dow Jones Industrial Average must be confirmed by transport stocks, and vice versa, to be sustained. As of Thursday’s close, the 20-member Dow Jones Transportation Average — a barometer of consumer and industrial demand — has slumped 19% from its November peak, teetering near so-called bear-market territory.

Some of the main moves in markets:

Stocks

• The S&P 500 rose 1.2% as of 10:07 a.m. New York time
• The Nasdaq 100 rose 1.7%
• The Dow Jones Industrial Average rose 0.8%
• The Stoxx Europe 600 rose 0.9%
• The MSCI World Index rose 1.2%
• Bloomberg Magnificent 7 Total Return Index rose 1.6%
• The Russell 2000 Index rose 1.4%

Currencies

• The Bloomberg Dollar Spot Index fell 0.1%
• The euro rose 0.3% to $1.0883
• The British pound fell 0.1% to $1.2939
• The Japanese yen fell 0.7% to 148.85 per dollar

Cryptocurrencies

• Bitcoin rose 3.7% to $83,319.59
• Ether rose 3.2% to $1,900.8

Bonds

• The yield on 10-year Treasuries advanced five basis points to 4.31%
• Germany’s 10-year yield advanced five basis points to 2.91%
• Britain’s 10-year yield advanced three basis points to 4.70%

Commodities

• West Texas Intermediate crude rose 0.3% to $66.76 a barrel
• Spot gold was little changed

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Sujata Rao, Margaryta Kirakosian and John Viljoen.

©2025 Bloomberg L.P.