Catenna, Friday, March 14, 2025- US stocks rallied on Friday after news of a government funding plan by lawmakers, as investors tried to finish a rocky week as all three major indexes were on track to continue their loss streak for another week.
The Dow opened higher and surged 572 points, or 1.40%. The broader S&P 500 rose 1.75% and the Nasdaq Composite gained 2.11%.
The rebound comes after a steep decline on Thursday that saw the S&P 500 close in correction territory, down more than 10% from its recent high, for the first time since late 2023.
Tech megacaps led gains on Friday, with Nvidia Corp up by 4.21%. and Tesla Inc. up at least 3.29%. The Nasdaq 100 climbed 2.07%.
According to FactSet data, the benchmark index has shed roughly $5 trillion in market value since its peak on February 19, while the Dow’s gains on Friday pared some of this week’s losses.
Minority Leader Chuck Schumer took to the Senate floor Friday morning to defend his decision to support a Republican short-term funding bill that will effectively help avoid a government shutdown at the end of the day.
Markets hate uncertainty, and the clarity of dodging a shutdown provided a boost for stocks at the end of a turbulent week.
President Donald Trump’s tariffs have roiled markets this month, and recent drawdowns can also present opportunities for rebounds.
Markets rose despite news that consumer sentiment fell 11% this month to a reading of 57.9, a preliminary reading showed, down from last month’s reading of 64.7 and reaching its lowest level since November 2022, according to the latest consumer sentiment survey from the University of Michigan.
