NEW YORK (AP) — U.S. stocks surged on Friday, rebounding from a week of volatility as investors reacted positively to diminishing fears of a government shutdown and a strong performance in the technology sector.

Major Indices Post Significant Gains

The Dow Jones Industrial Average climbed 650 points, or 1.7%, closing at 41,487.79. This rebound followed Thursday’s six-month low, with the index reclaiming the 41,000 level, though it remains below its 200-day moving average.

The S&P 500 advanced 2.1% to 5,638.13, marking its best trading day since the election. However, the rally wasn’t enough to prevent Wall Street from recording a fourth consecutive losing week.

The Nasdaq Composite rose 2.6% to 17,754.09, driven by a strong performance in technology stocks.

Government Shutdown Averted

Senate Minority Leader Chuck Schumer’s decision to support a six-month stopgap bill from Republicans reduced the likelihood of a government shutdown. This development brought relief to markets struggling with uncertainty. Major indices responded with a sharp rebound, with the S&P 500 jumping 2%, the Nasdaq rising 2.5%, and the Dow Jones Industrial Average climbing nearly 700 points.

Tech Stocks Lead the Rally

The technology sector led the market’s surge, with several key companies posting strong gains:

• Nvidia: Shares surged 4.2%, bolstered by positive results from supplier Foxconn and anticipation ahead of the upcoming GPU Technology Conference.
• Tesla: The electric vehicle maker’s stock rose 3.6% after addressing concerns over tariffs impacting domestic manufacturing costs.
• Palantir: The data analytics company’s shares increased by 8.1%, despite recent declines due to tech sector weakness and potential defense spending cuts.
• DocuSign: The electronic signature company’s stock soared 16% following strong fourth-quarter earnings and revenue forecasts.

Consumer Sentiment Declines

Despite the market’s positive performance, consumer sentiment showed signs of weakening. The University of Michigan’s Index of Consumer Sentiment fell 11% from February, reaching its lowest level since late 2022. The decline reflects rising inflation expectations and growing political and economic uncertainty.

Gold Prices Hit Record High

Amid ongoing market volatility and concerns over global trade tensions, gold prices surged to a record high, surpassing $3,000 an ounce for the first time. Investors sought safe-haven assets, reflecting anxiety about escalating trade wars and U.S. economic growth.

Outlook

While Friday’s rally provided a respite from a turbulent week, investors remain cautious. Ongoing trade tensions, potential inflationary pressures, and political uncertainties continue to influence market sentiment. Analysts advise monitoring these developments closely as they may impact future market performance.

Note: All data and events are accurate as of March 14, 2025.