The U.S. stock market experienced a significant upswing, with the Dow Jones Industrial Average climbing approximately 485.60 points, marking a 1.14% increase. This rise occurred amidst a week of volatility, as investors grappled with mixed economic signals and corporate earnings reports. Meanwhile, the S&P 500 and Nasdaq Composite also saw gains of 1.12% and 1.46%, respectively.
Market analysts observed that the market breadth is showing signs of improvement, even in the face of high levels of consolidation. Jurrien Timmer, director of global macro at Fidelity, noted that while the S&P 500's 78% price gain since its 2022 low is below average, it remains consistent with past cycles influenced by rising interest rates.
"So far, the S&P 500 has notched a 78% price gain since the 2022 low. That's still below the average but in line with past cycles in which rising rates restrained equity prices," said Jurrien Timmer, director of global macro at Fidelity.
Despite these positive movements, the week has been marked by volatility, with pressures noted across various sectors. Mark Hackett, chief market strategist at Nationwide, commented on the broad-based pressure impacting small caps and growth sectors.
"The pressure this week is broad based, with notable weakness in small caps and growth, while global markets continue to lead," remarked Mark Hackett, chief market strategist at Nationwide.
In corporate news, Marvell Technology's shares plunged approximately 13% after reporting fiscal fourth-quarter earnings of 60 cents per share on $1.82 billion in revenue. Although these figures surpassed analysts' expectations of 59 cents per share on $1.80 billion revenue, investor sentiment remained cautious. Meanwhile, shares of Zscaler jumped by 4% following the release of their strong quarterly results, which reported adjusted earnings of 78 cents per share on $648 million in revenue, outperforming analysts' forecasts.
Victoria's Secret offered guidance for its first-quarter revenue to be between $1.30 billion and $1.33 billion, which fell short of analysts' expectations of $1.39 billion. This announcement came alongside slides in shares of chipmakers Broadcom and Micron Technology, indicating continued sector challenges.
The White House announced a temporary relief for automakers, granting a one-month delay in tariffs for vehicles compliant with the United States-Mexico-Canada Agreement. This decision provided some respite for the industry amid ongoing trade tensions.
Futures tied to the Dow Jones Industrial Average hovered near the flatline shortly after 6 p.m. ET, reflecting cautious optimism among investors as trading continues to unfold.