In a tumultuous week on Wall Street, the New York Stock Exchange closed with more volatility, reflecting investors’ concerns about the U.S. economy and uncertainties surrounding President Donald Trump’s tariff policies. The S&P 500 managed to recover from an early 1.3% loss to end the day with a 0.6% gain. This week witnessed extreme market fluctuations, marking the worst performance for the S&P 500 since September, with daily swings of over 1% in either direction for six consecutive days.

The Dow Jones Industrial Average rose by 0.5%, adding 222 points, while the Nasdaq composite saw a 0.7% increase. Despite the challenging week, the S&P 500 remains about 6% below its recent all-time high. Federal Reserve Chairman Jerome Powell’s comments late Friday helped alleviate some market fears as he expressed confidence in the current stability of the economy and indicated no immediate need for interest rate cuts to support it.

Following a series of disappointing economic reports, investors had anticipated multiple rate cuts by the Fed, but Powell’s statements tempered these expectations. The release of the latest jobs report, which showed an increase in hiring compared to the previous month, provided some relief. However, economists cautioned that underlying details, such as a rise in part-time employment, could hint at future economic challenges.

The ongoing tariff uncertainty, with the administration’s back-and-forth decisions on imposing tariffs and granting exemptions, has created a sense of chaos among businesses. This unpredictability has led to concerns about reduced hiring and increased inflation, impacting consumer confidence and spending. President Trump’s focus on using tariffs to bring jobs back to the U.S. has added to market uncertainties.

In response to the economic landscape, Treasury yields initially dropped post-jobs report but rebounded after Powell’s statements, signaling a shift in rate cut expectations. On the corporate front, Walgreens Boots Alliance surged following a buyout agreement, while Broadcom and Hewlett Packard Enterprises reported mixed earnings results. Costco faced a decline in stock value after reporting lower-than-expected profits.

Overall, the S&P 500 closed at 5,770.20, the Dow Jones Industrial Average at 42,801.72, and the Nasdaq composite at 18,196.22. Globally, German stocks retreated, echoing losses in European and Asian markets. The week’s market performance underscores the impact of economic uncertainties and policy decisions on investor sentiment.