Financial Markets                      03/21 16:03

   

   Stocks on Wall Street shook off a weak start and closed slightly higher 
Friday, snapping a four-week losing streak.

   The S&P 500 edged up 0.1%. The index finished with a 0.5% gain for the week. 
It's still down 4.8% so far this month.

   The Dow Jones Industrial Average eked out a 0.1% gain, while the Nasdaq 
composite rose 0.5%.

   Technology stocks, which had been the heaviest weights on the market in the 
early going, bounced back to offset a big share of the declines elsewhere in 
the S&P 500. The sector has been at the center of much of the market's recent 
sell-off in a reversal from their market-driving gains throughout the previous 
year. The stocks are among the most valuable on Wall Street and have outsized 
impacts on the whether the market gains or loses ground.

   Apple rose about 2% and Microsoft added 1.1%. Another Big Tech stock, 
Nvidia, fell 0.7%, while Micron Technology slid 8% for the biggest decline 
among S&P 500 stocks.

   Stocks have been losing ground for weeks over uncertainty about the 
direction of the U.S. economy. A trade war between the U.S. and its key trading 
partners threatens to worsen inflation and hurt both consumers and businesses. 
Inflation remains stubbornly above the Federal Reserve's goal of 2% and tariffs 
could hurt the central bank's efforts to ease the rate of inflation.

   President Donald Trump has set an April 2 deadline to impose more tariffs on 
trading partners. It follows a series of other deadlines that have been set for 
tariffs only to be postponed, sometimes at the last minute.

   "Investors are confused, but there's a lot less panic infusing the market," 
said Mark Hackett, chief market strategist at Nationwide.

   Businesses have been warning investors about tariffs, inflation and growing 
uncertainty about the impact to costs.

   Nike slumped 5.5% after it forecast a steep decline in revenue in the 
current quarter, blaming geopolitical dynamics, new tariffs by the Trump 
administration and a less confident consumer.

   FedEx tumbled 6.4% after the package delivery company said it expects 
revenue to be flat to slightly down year-over-year and lowered its per-share 
profit guidance.

   Homebuilder Lennar fell 4% after giving investors a weaker-than-expected 
forecast for new orders and average sales prices for the current quarter. It 
said high interest rates, inflation, and waning consumer confidence are 
weighing on an already tough housing market.

   High interest rates have been a key issue for the housing market. The 
Federal Reserve held its benchmark interest rate steady at its most recent 
meeting this week as it assesses the potential impact from tariffs and other 
U.S. policy shifts.

   The Fed cut interest rates through the end of last year amid consistently 
easing inflation rates, but has been holding steady so far in 2025. Lower rates 
can bolster the economy, but they can also push inflation higher.

   Fed Chair Jerome Powell has acknowledged that the economy remains solid, but 
stressed that uncertainty is making forecasting difficult.

   "With Fed Chair Powell acknowledging that the effect of tariffs on consumer 
confidence, economic growth and inflation remain unknown, we might be in this 
below-water holding pattern until after April 2," said Sam Stovall, chief 
investment strategist at CFRA.

   A recent batch of economic reports on home sales, industrial production and 
unemployment reinforced the view that the economy is holding strong. But other 
reports on consumer sentiment and retail sales have revealed rising caution 
from consumers.

   "We're in really pessimistic territory," Hackett said. "When everybody is 
pessimistic, that's when a tiny bit of optimism can move markets pretty 
strongly."

   In the bond market, Treasury yields mostly held steady. The yield on the 
10-year Treasury rose to 4.25% from 4.23% late Thursday.

   Airlines were under pressure. A fire knocked out power at London's Heathrow 
Airport, forcing it to shut down and disrupting global travel for hundreds of 
thousands of passengers. Ryanair Holdings fell 1.5%.

   Shares in several U.S.-based airlines were mixed. American Airlines rose 
1.2%, United Airlines added 1.1% and Delta Air Lines fell 0.4%.

   Troubled airplane maker Boeing surged 3.1% after Trump said Boeing will 
build the Air Force's future fighter jet. The company has been facing scrutiny 
over safety issues for years.

   Boeing's rival in the defense sector, Lockheed Martin, slumped 5.8%.

   All told, the S&P 500 rose 4.67 points to 5,667.56. The Dow gained 32.03 
points to 41,985.35, and the Nasdaq rose 92.43 points to 17,784.05.

   Markets in Europe fell. Britain's FTSE 100 shed 0.6% after the Bank of 
England held its main interest rate steady a day earlier.

   Germany's DAX slipped 0.5%. German lawmakers voted for a budget that will 
boost defense and infrastructure spending.

   ___

   Jiang Junzhe and Matt Ott contributed to this report.

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