Stock Market Update: Dow, S&P 500 Surge; Nasdaq Rebounds in Best Day Since November
By Amalya Dubrovsky, Karen Friar, and Ines Ferré
Updated: March 14, 2025, 2:18 PM EDT
The U.S. stock market experienced a significant rebound on Friday, capping off a turbulent week on Wall Street. As investors absorbed easing concerns about a potential government shutdown, the major indices saw impressive gains driven by optimism in the tech sector.
Strong Gains Across Major Indexes
The S&P 500 index surged by more than 2.1%, a substantial recovery after falling into correction territory just a day prior. The Nasdaq Composite followed suit, jumping over 2.6%, marking its best performance since early November—a positive shift that highlighted a resurgence in tech stocks. Meanwhile, the Dow Jones Industrial Average recorded an increase of over 600 points, which translates to a gain of approximately 1.6%.
However, despite this favorable end to the trading week, all three major benchmarks suffered losses exceeding 2% over the entirety of the week, reflecting previous hesitations caused by political and economic uncertainties.
Background: A Week of Market Volatility
The week leading up to Friday’s gains was marked by volatility primarily driven by evolving concerns related to President Donald Trump’s tariff policies. Investors grappled with expectations around international trade tensions, particularly in light of recent announcements regarding tariffs on various goods. These uncertainties overshadowed otherwise encouraging economic indicators and left the market in a precarious position.
Notably, it only took about a month for the S&P 500 to slide into correction territory, marking its fifth-fastest descent into such a condition over the past 75 years, according to analysis from Ritholtz Wealth Management.
Easing Government Shutdown Fears
The market’s turnaround on Friday was further fueled by a shift in political dynamics. Senate Democratic leader Chuck Schumer’s decision to back off from threatening to block a crucial funding bill aimed at preventing a government shutdown played a significant role in easing investor anxieties.
Compounding these positive developments, data released earlier in the week showed inflation trends aligning with the Federal Reserve’s goals, suggesting that the economic strain many had anticipated may not be as severe as once thought. However, concerns lingered as consumer sentiment, measured by the University of Michigan’s survey, was reported at a disappointing 57.9—well below the expected 63. ## Energy and Commodity Markets
In the energy sector, oil prices also demonstrated resilience. West Texas Intermediate (WTI) crude futures climbed over $67 per barrel, while Brent crude prices rose above $70. Traders remained cautious, evaluating the intersection of tariff-induced demand fluctuations and ongoing geopolitical developments, particularly the prospect of peace in Ukraine.
Amid these developments, Dennis Kissler, senior vice president at BOK Financial, noted, "Most traders still feel some kind of a peace deal is near, which would likely add Russian barrels to the market." The sentiment reflects a cautious optimism as negotiations continue.
Conclusion
Friday’s market performance indicates a momentary reprieve from the volatility that defined the week. While the gains were substantial, the overall sentiment remains mixed as traders watch closely for updates on trade policies, government actions, and key economic indicators in the weeks ahead. The market’s ability to regain momentum, particularly in the tech sector, may play a pivotal role in shaping investor confidence moving forward.
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