tocks rallied Friday, clawing back some of the steep losses seen over the week, as investors got a reprieve from tariff-related headlines.

The Dow Jones Industrial Average rose 674.62 points, or 1.65%, to close at 41,488.19. The S&P 500 climbed 2.13% to end at 5,638.94, and the Nasdaq Composite advanced 2.61% to settle at 17,754.09. It was the best day in 2025 for both the S&P 500 and the Nasdaq.

Big tech shares that were rattled earlier this week saw a sharp recovery on Friday. Nvidia shares popped more than 5%. Tesla
jumped nearly 4%, and Meta Platforms gained close to 3%. Amazon
and Apple also rose.

Stocks bounced after a lack of new headlines out of the White House related to tariffs, easing concerns around escalating tensions for the time being. Investors might also be scooping up shares after a stock market pullback on Thursday.

A decline of more than 1% Thursday pulled the S&P 500 into a correction – a decline of at least 10% from the record close notched just 16 days ago. The session's sell-off dragged the Nasdaq further into correction, and it brought the small-cap Russell 2000
closer to a bear market, or a drawdown of 20% from its high.

That marked another milestone in the pullback that has gripped investors over the past three weeks as President Donald Trump's on-again-off-again tariff policy drove up uncertainty and market volatility.

Indeed, even Friday's rally couldn't spare the three major averages from weekly losses. The Dow fell roughly 3.1% for its worst week since March 2023. The S&P 500 and the Nasdaq both dropped more than 2% and posted their fourth consecutive losing week.

Adding to Friday's positive sentiment was Senate minority leader Chuck Schumer, D-N.Y., saying he wouldn't block a Republican government funding bill.

However, data released Friday from the University of Michigan confirmed that consumer confidence has suffered from the ongoing tariff-related uncertainty, worries that have driven the market down the last three weeks. Consumer sentiment dropped in March to 57.9, lower than the 63.2 economists polled by Dow Jones had expected.

"Consumer sentiment came in worse, inflation expectations are rising, the 10-year Treasury yield
is rising. You would think that the market would be off. So a lot of folks are watching to see if this rally has any breadth or legs," said Thomas Martin, portfolio manager at Globalt Investments.

Investors are gearing up for the Federal Reserve policy meeting scheduled for next week, where fed funds futures are pricing in a 97% likelihood of interest rates holding steady, according to CME's FedWatch tool.

"What we would like to see is rates not go up, because that would be an indication that the Fed is losing control. If the Fed says they're cutting and rates go up, that's a lack of confidence," Martin added.

Source: CNBC