Nasdaq Jumps 2.6% on Stock Markets Rebound, Dow Jones 500 Up by 1.6%

The broader US stock indices closed sharply higher on the day, with Nasdaq index leading the way, while Dow Jones followed, as most major tech stocks rebounded.

The Nasdaq Composite has stabilized in recent days
The Nasdaq Composite has stabilized in recent days

The Nasdaq surged over 2.5%, marking its best single-day performance since January, while the Dow Jones climbed more than 1.5%, as investors largely dismissed the weaker-than-expected Michigan Consumer Sentiment report.

The report revealed a sharp drop in consumer confidence, with sentiment falling from 64.7 points last month to 57.9 points this month, well below the 63.1 forecast. Additionally, year-ahead inflation expectations spiked from 4.3% to 4.9%, raising concerns about persistent inflationary pressures.

Nasdaq Chart Daily – The Decline Has Been Pretty Sharp

Despite Friday’s strong market rally, major indices still closed the week in negative territory, extending their four-week losing streak. All three major indices—the S&P 500, Nasdaq, and Dow—have now posted losses for four consecutive weeks.

Big tech stocks, known as the Magnificent 7, all saw gains on Friday but had mixed performances throughout the week. Nvidia stood out as the top performer, rising nearly 8% for the week, while Apple suffered the steepest decline, dropping nearly 11%.

The overall market sentiment remains fragile, with investors grappling with economic uncertainty, trade tensions, and shifting interest rate expectations. The focus now turns to upcoming economic reports and corporate earnings, which will play a key role in determining whether Friday’s rebound has staying power or if further downside risks remain.

Friday’s Closing Changes for Major US Indices:

  • S&P 500: +117.42 points (+2.13%), closing at 5,638.94.
  • Nasdaq Composite: +451.07 points (+2.61%), closing at 17,754.09.
  • Dow Jones Industrial Average: +674.62 points (+1.65%), closing at 41,488.19.

Weekly Performance for Major US Stock Indices:

  • S&P 500: -2.27% this week, following declines of -1.66%, -0.90%, and -3.10% in the previous three weeks.
  • Nasdaq Composite: -2.43% this week, extending losses from the past three weeks of -2.1%, -3.47%, and -2.43%.
  • Dow Jones Industrial Average: -3.07% this week, marking its fourth consecutive losing week.
  • Russell 2000: +2.53% today, but down -1.51% for the week.

Big Tech Stocks: Daily vs. Weekly Performance:

  • Nvidia (NVDA): +5.27% today, +7.97% for the week – the only major tech stock to post a weekly gain.
  • Meta (META): +2.87% today, but down -2.89% for the week.
  • Microsoft (MSFT): +2.58% today, but down -1.21% for the week.
  • Amazon (AMZN): +2.09% today, but ended the week -0.65% lower.
  • Apple (AAPL): +1.82% today, but -10.7% for the week, marking its worst weekly decline of the year.
  • Tesla (TSLA): +3.86% today, but -4.83% for the week.
  • Alphabet (GOOGL): +1.68% today, but -4.81% for the week.

While Friday’s rally was impressive, key indices are still in a downtrend, and major resistance levels need to be broken before confirming a sustained recovery. Next week’s economic data and earnings reports will be crucial in determining whether this rebound continues or fades.

Nasdaq Live Chart

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Skerdian Meta
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Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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