US stocks staged a late-session rebound on Friday, recovering from steep intraday losses as investors assessed the Federal Reserve’s stance amid economic uncertainty. Markets had been under pressure throughout the week, weighed down by trade policy concerns and a weaker-than-expected jobs report that raised fears of slowing growth. However, comments from Fed Chair Jerome Powell helped ease some anxiety, as investors interpreted his remarks as a sign that the central bank remains attentive to economic conditions. The S&P 500 and Nasdaq turned higher after earlier declines, while the Dow Jones clawed back losses to end the day in positive territory. Despite the recovery, all three major indices closed the week with significant losses, as persistent uncertainty over tariffs and economic momentum kept traders on edge.

Key Takeaways:

  • S&P 500 Posts Worst Week Since September Despite Late Recovery: The S&P 500 rebounded on Friday, rising 0.55% to close at 5,770.20 after dropping more than 1% earlier in the session. The late-day recovery helped limit losses, but the index still posted a sharp 3.1% decline for the week, marking its worst weekly performance since September. 
  • Dow Jones Ends Higher but Suffers 2.4% Weekly Decline: The Dow Jones Industrial Average added 222.64 points, or 0.52%, on Friday to close at 42,801.72, reversing an earlier plunge of over 400 points at session lows. Despite the recovery, the blue-chip index ended the week down 2.4%, as trade uncertainty and weak economic data weighed on sentiment. 
  • Nasdaq Enters Correction Territory as Tech Stocks Slide: The Nasdaq Composite climbed 0.7% on Friday to finish at 18,196.22, but the tech-heavy index still suffered a steep 3.5% weekly decline, officially entering correction territory after falling more than 10% from its recent high. The ongoing selloff in Tesla, which has now declined for seven consecutive weeks, also contributed to the Nasdaq’s losses. The automaker’s shares dropped more than 10% this week, closing Friday at $270.48, their lowest level since November 5, as investors reacted to its deteriorating market capitalisation and political uncertainty surrounding CEO Elon Musk’s ties to the Trump administration.
  • Weaker-Than-Expected US Jobs Report Raises Economic Concerns: February’s nonfarm payrolls report showed job growth of just 151,000, well below the 170,000 forecast, adding to fears of a slowing labour market. The unemployment rate ticked up to 4.1%, while federal government employment declined by 10,000 jobs as part of cost-cutting measures under the Trump administration. However, overall government payrolls increased by 11,000, with hiring in state and local sectors offsetting the federal cuts. 
  • Treasury Yields Edge Higher Despite Initial Drop on Jobs Data: The 10-year Treasury yield climbed 2 basis points to 4.303%, reversing earlier declines following the disappointing payrolls report. The 2-year yield also rose by more than 2 basis points to 3.987%, as investors digested comments from Federal Reserve Chair Jerome Powell. 
  • European Markets Slide as Trade and Growth Concerns Weigh on Sentiment: European stocks ended the week lower, with the Stoxx 600 falling 0.46% on Friday, marking its first weekly decline of the year. The DAX dropped 411 points, or 1.75%, while the FTSE 100 slid 1.47% to 8,679.88. France’s CAC 40 lost 1.08%, while Italy’s FTSE MIB outperformed, rising 0.91%. Luxury stocks saw heavy selling pressure, with Richemont and Burberry tumbling over 5% and nearly 7%, respectively, as concerns over US import tariffs rattled investor confidence in high-end consumer goods. Meanwhile, Eurozone GDP grew 0.2% quarter-over-quarter and 1.2% year-over-year in the fourth quarter, surpassing expectations of 0.1% and 0.9%, respectively. However, German factory orders plunged 7.0% in January, significantly worse than the expected 2.4% decline. Spain’s industrial output fell 1% year-over-year in January, while Eurozone employment grew slightly better than expected at 0.1% quarter-over-quarter and 0.7% year-over-year. 
  • Asian Markets Drop as Japan’s Bond Yields Hit 16-Year Highs: Stock markets across the Asia-Pacific region slumped on Friday, mirroring losses on Wall Street. Japan’s Nikkei 225 plunged 2.17% to 36,887.17, while the broader Topix fell 1.56% to 2,708.59. South Korea’s Kospi dropped 0.49% to 2,563.48, while the Kosdaq tumbled 0.98% to 727.70. Australia’s S&P/ASX 200 sank 1.81% to a six-month low of 7,948.20, with losses accelerating as investors reacted to weak economic data. In China, the Hang Seng Index slipped 0.76% in volatile trading, while the CSI 300 declined 0.31% to 3,944.01. Meanwhile, Japan’s 30-year government bond yield surged to its highest level since 2008, signalling growing investor caution amid inflation concerns and global economic uncertainty.
  • Oil Prices Climb as Trump Hints at Potential Russia Sanctions: Crude oil prices moved higher on Friday after President Trump suggested he was considering new sanctions on Russia if it fails to reach a cease-fire with Ukraine. Brent crude rose 96 cents, or 1.38%, to $70.42 per barrel, while West Texas Intermediate (WTI) crude gained 68 cents, or 1.02%, to settle at $67.04. 

FX Today:

  • EUR/USD Rises as Uptrend Strengthens: The EUR/USD pair climbed 0.59% on Friday, closing at 1.0847 as the euro extended its recent rebound. The pair opened at 1.0784, reaching a session high of 1.0883 before settling higher. The euro’s gains were supported by stronger-than-expected Eurozone GDP data, which showed 0.2% quarter-over-quarter growth, surpassing the forecast of 0.1%. Technically, EUR/USD has broken past key resistance at the 200-day SMA of 1.0726 and remains above the 50-day SMA at 1.0418. If bullish momentum continues, the pair could test the 1.0900 level, last seen in December 2024. However, if the euro weakens, immediate support is seen at 1.0800, followed by 1.0750, with a deeper pullback potentially dragging the pair back toward 1.0700.
  • GBP/USD Gains Further Ground: GBP/USD advanced 0.34% to close at 1.2925, continuing its strong uptrend from February lows. The pair opened at 1.2876, reaching an intraday high of 1.2944 before pulling back slightly. The British pound has now gained nearly 3% from its February low of 1.2500, breaking above key technical levels. The 50-day SMA at 1.2491, the 100-day SMA at 1.2627, and the 200-day SMA at 1.2790 all suggest continued bullish momentum. If GBP/USD sustains above 1.2950, it could target the psychologically significant 1.3000 level, a major resistance area. On the downside, immediate support lies at 1.2850, with a break below this level opening the door for a pullback toward 1.2800. A further decline could push the pair toward 1.2700, where buyers may step in again.
  • USD/CAD Climbs as Bullish Momentum Persists: The USD/CAD pair gained 0.52% on Friday, closing at 1.4367 after briefly touching a high of 1.4426. The pair opened at 1.4292 and dipped to a session low of 1.4278 before resuming its uptrend. The move higher came despite mixed Canadian employment data, which showed a net gain of 1,100 jobs in February, entirely in part-time work. The unemployment rate remained steady at 6.6%, while employment fell by 19,500 jobs. USD/CAD remains well-supported above key moving averages, with the 50-day SMA at 1.4344, the 100-day SMA at 1.4192, and the 200-day SMA at 1.3924. If the pair sustains momentum above 1.4400, the next upside target would be 1.4500, last seen in December 2024. However, a failure to hold above this level could trigger a pullback toward 1.4300.
  • Gold Consolidates Near Highs, Holding Above Key Support: Gold ended the session at 2910, posting a marginal loss of 0.03% as the metal held near recent highs. The session saw a high of 2930and a low of 2896, with price action suggesting continued consolidation. Despite the slight decline, gold remains in a firm uptrend, having gained over 2% in the past month. The 50-day SMA at 2799, the 100-day SMA at 2732, and the 200-day SMA at 2599 all reinforce the bullish outlook, as the price remains well above these key indicators. If gold continues consolidating, support is seen at 2896, with a further drop potentially testing 2870. A break below this would shift momentum in favour of sellers, potentially driving gold toward 2850. 

Market Movers:

  • Costco Drops on Earnings Miss: Shares of Costco declined 6% after the retailer reported second-quarter earnings of $4.02 per share, missing analyst estimates of $4.11 per share. 
  • Broadcom Jumps After Strong Earnings and Upbeat Outlook: Broadcom surged 8.6% after reporting fiscal first-quarter earnings that beat expectations, according to LSEG. 
  • Walgreens Boots Alliance Rallies on Acquisition Deal: Walgreens soared 7.5% after private equity firm Sycamore Partners announced plans to acquire the drugstore chain for $11.45 per share in cash.
  • Hewlett Packard Enterprise Plummets on Weak Forecast: Hewlett Packard Enterprise shares dropped nearly 12% after issuing a disappointing second-quarter outlook.
  • Gap Surges on Strong Earnings Beat: Gap shares skyrocketed 19% after the retailer posted fourth-quarter earnings of $0.54 per share, far exceeding analyst projections of $0.37 per share.
  • Intuitive Machines Continues to Slide: Intuitive Machines (LUNR) extended its losses, dropping more than 21% on Friday, following Thursday’s 20% plunge.

As the trading week came to a close, markets remained volatile, with the S&P 500 posting its worst week since September despite Friday’s rebound. The Dow Jones and Nasdaq also saw sharp weekly declines, with the latter entering correction territory after dropping more than 10% from its recent high. Investors grappled with trade policy uncertainty as President Trump’s shifting tariff stance failed to provide clarity, while weaker-than-expected job growth added to concerns about slowing economic momentum. Treasury yields climbed as Federal Reserve Chair Jerome Powell signalled inflation risks remain a priority. Meanwhile, European and Asian markets closed lower amid weak economic data and geopolitical uncertainties, reinforcing the fragile sentiment in global markets.