U.S. stocks opened on a muted note on Friday, with investors on edge after a week of heightened volatility driven by trade policy uncertainty. The Dow Jones Industrial Average was marginally higher by 0.2 percent, while the S&P 500 gained 0.3 percent. The Nasdaq Composite edged higher by 0.4 percent, trying to recover from recent losses.
Investor sentiment remained fragile after President Donald Trump announced tariff exemptions for certain Canadian and Mexican goods under the USMCA trade pact until April 2. While the move softened the initial stance, it failed to ease market anxiety, as traders grappled with a lack of clarity on long-term policy direction.
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Adding to the unease, a weaker-than-expected jobs report pointed to a potential cooling in the U.S. economy. Nonfarm payrolls increased by just 151,000 in February, missing the 170,000 estimate. Meanwhile, the unemployment rate inched up to 4.1 percent, raising concerns about slowing momentum.
After a sharp selloff on Thursday—where the Dow plunged over 400 points and the Nasdaq entered correction territory—stocks were struggling to find their footing. If markets close in the red, the major indices would record their worst week since September 2024, with the S&P 500 down 3.6 percent so far, the Dow lower by 2.9 percent, and the Nasdaq leading losses with a 4.1 percent decline.
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Despite the broader weakness, AI stocks provided some resilience. Broadcom surged more than 5 percent after reporting strong earnings, while Nvidia also gained in early trade. With markets digesting the latest economic data and trade developments, volatility is expected to remain high throughout the session.
European markets traded lower on Friday, capping off a turbulent week dominated by shifting U.S. trade policies, a fresh rate cut from the European Central Bank, Germany’s fiscal overhaul, and increased regional defence spending.
Investor sentiment remained cautious following weaker-than-expected U.S. jobs data, which showed nonfarm payrolls rising by just 151,000 in February, missing forecasts.
Luxury stocks were among the biggest decliners, with Richemont and Burberry tumbling 4 percent and 6.5 percent, respectively, as the Stoxx Europe Luxury 10 index fell 2.3 percent. The sector faces potential headwinds from higher U.S. import tariffs, which could weaken consumer demand and push prices higher.
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