WASHINGTON (dpa-AFX) - After moving sharply higher early in the session, stocks saw considerable volatility over the course of the trading day on Friday. The major averages showed wild swings as the day progressed, although the S&P 500 and the Nasdaq still managed to end the day at new record closing highs.
The major averages moved to the upside going into the close after an early afternoon pullback. The Dow jumped 432.43 points or 1.0 percent at 43,819.27, the Nasdaq climbed 105.55 points or 0.5 percent to 20,273.46 and the S&P 500 rose 32.05 points or 0.5 percent to 6,173.07.
Optimism about new trade deals contributed to the early rally on Wall Street after President Donald Trump indicated the U.S. had signed an agreement with China.
A White House official later clarified that the U.S. and China have agreed to 'an additional understanding of a framework to implement the Geneva agreement.'
A spokesperson for China's Ministry of Commerce subsequently said the two sides have 'confirmed the details of the framework.'
The spokesperson said Washington would lift 'restrictive measures,' while Beijing would 'review and approve' items under export controls.
Commerce Secretary Howard Lutnick also told Bloomberg the Trump administration expects to soon reach deals with ten major trading partners.
However, stocks pulled back sharply in afternoon trading after Trump said he is ending trade talks with Canada due to the country imposing a digital services tax on our U.S. technology companies.
'We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,' Trump said in a post on Truth Social.
On the U.S. economic front, the Commerce Department released a closely watched report that included the Federal Reserve's preferred readings on consumer price inflation.
While the report showed consumer prices in the U.S. crept up in line with expectations in the month of May, the report also showed core consumer prices rose by slightly more than expected.
'Today's release revealed a little more core inflation than expected based on CPI and PPI data, but not enough to concern anyone,' said FHN Financial Chief Economist Chris Low.
The University of Michigan also released a report showing consumer sentiment in the U.S. improved by slightly more than expected in the month of June.
Sector News
Retail stocks turned in a strong performance on the day, driving the Dow Jones U.S. Retail Index up by 1.8 percent to its best closing level in over four months.
Considerable strength was also visible among airline stocks, as reflected by the 1.5 percent gain posted by the NYSE Arca Airline Index.
On the other hand, gold stocks moved sharply lower along with the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 4.0 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Friday. Japan's Nikkei 225 Index shot up by 1.4 percent, while China's Shanghai Composite Index slid by 0.7 percent.
Meanwhile, the major European markets all moved to the upside on the day. The French CAC 40 Index surged by 1.8 percent, the German DAX Index jumped by 1.6 percent and the U.K.'s FTSE 100 Index climbed by 0.7 percent.
In the bond market, treasuries gave back ground after trending higher over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 3.0 basis points to 4.283 percent.
Looking Ahead
The monthly jobs report is likely to be in focus next week, while traders are also likely to keep an eye on reports on manufacturing and service sector activity and the U.S. trade deficit.
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