Wall Street Rebounds as Stocks Rally Amid Economic Data and Trump Policies

Wall Street roared back to life on Friday as stocks staged their biggest rally in months, with the S&P 500 surging 2.1% and the tech-heavy Nasdaq composite jumping 2.6%. The Dow Jones industrial average wasn’t left behind, climbing a hefty 674 points. Finally, some good news after four straight weeks of market losses.

Tech stocks led the charge, because of course they did. Nvidia, everyone’s favorite AI darling, shot up 5.3%, while Apple managed a respectable 1.8% gain. Intel jumped nearly 5% after naming a new CEO – nothing like fresh blood to excite investors. Netflix got a nice boost too, climbing 4% after analysts at MoffettNathanson decided they liked what they saw.

The rally came just as the S&P 500 had stumbled into correction territory, down 10% from its record high. Talk about timing. The Senate’s move to prevent a partial government shutdown helped calm some nerves, while strong profits from Ulta Beauty reminded everyone that consumers are still spending money on looking good. The prolonged investor negativity had set the stage for this multiday relief rally. Morgan Stanley analysts suggest that while a short-term relief rally is likely, investors should remain cautious about sustained gains.

Global markets joined the party, with Hong Kong and Shanghai both posting gains above 1.8%. Chinese regulators ordered financial institutions to boost consumer finance – because nothing says “healthy economy” quite like being ordered to lend more money.

Meanwhile, gold briefly touched $3,000 an ounce, proving that some investors still prefer shiny metals to digital promises. Speaking of digital, Bitcoin held steady at $83,200, apparently taking a breather from its usual roller coaster routine.

Not everyone had a great day, though. Affirm Holdings dropped 12% after losing its Walmart partnership. Ouch. The 10-year Treasury yield ticked up to 4.31%, while oil futures managed a modest 1.1% gain to $67.90 per barrel.

All eyes are now turning to the Federal Reserve‘s upcoming two-day policy meeting. Fed Chair Jerome Powell’s post-meeting comments will be scrutinized more closely than a teenager’s social media posts. Markets are particularly interested in the Fed’s quarterly economic projections, especially given concerns about slowing U.S. growth.

The market’s mood swing comes amid ongoing uncertainty about Trump administration policies and their potential impact on trade. Investors are watching these developments while simultaneously trying to gauge consumer sentiment – because apparently, they need more things to worry about.

With Klarna’s IPO filing adding to the mix, next week promises to be anything but boring.