US stocks showed a tentative recovery on Friday as investors reacted to new global tariffs and rising oil prices.
US stocks attempted to stabilize on Friday as investors weighed the impact of new global tariffs against rising oil prices and elevated bond yields. The Dow Jones Industrial Average rose 0.1%, while the S&P 500 remained nearly flat. The Nasdaq Composite fell 0.1% as the market sought to recover from a sharp sell-off on Thursday caused by heavy AI spending from major tech companies. The administration announced that a new set of Section 301 tariffs went into effect overnight, targeting nearly all US imports with rates between 10% and 12.5%. To mitigate the impact on inflation, the administration exempted several energy products from these new costs. Market activity was further influenced by oil prices, which fell 2.8% to trade below $98 per barrel despite a weekly gain. Investors are now looking toward upcoming economic data, including S&P Global's flash purchasing managers index updates for July and new home sales figures.