Wall Street closed higher on Friday after a volatile trading session, with tech stocks surging while Dell Technologies saw a decline. The turbulence followed an unexpected confrontation between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy at the White House, which unsettled investors already grappling with inflation concerns and a sluggish economy.
Market Reaction to Political Tensions
The meeting between Trump and Zelenskiy, anticipated to strengthen U.S.-Ukraine relations, instead turned into a heated exchange that played out before global media. This confrontation introduced fresh uncertainty regarding Ukraine’s ongoing conflict with Russia, adding to existing anxieties over the economic outlook.
The S&P 500 initially fell in response to the political fallout but later rebounded, closing the day with gains. Investors appeared to take a wait-and-see approach, weighing the potential geopolitical implications before making significant moves.
Tech Stocks Drive Market Recovery
Despite the initial decline, major technology stocks helped lift the market. Nvidia and Tesla both surged nearly 4%, significantly contributing to the broader market’s recovery. However, not all tech companies fared well. Dell Technologies dropped 4.7% after forecasting a decline in its adjusted gross margin rate for the 2026 fiscal year, while HP Inc. fell 6.8% following a disappointing quarterly profit forecast.
Key Market Indices End Higher
The S&P 500 rose 1.59%, closing at 5,954.50 points. The Nasdaq Composite gained 1.63%, finishing at 18,847.28 points, while the Dow Jones Industrial Average climbed 1.39% to end at 43,840.91 points. Trading volume on U.S. exchanges was notably high, with 17.5 billion shares traded—above the 20-session average of 15.4 billion.
Sector Performance and Weekly Trends
All 11 S&P 500 sector indexes posted gains, led by financials, which rose 2.1%, followed by consumer discretionary stocks, which increased 1.8%.
For the week, the S&P 500 recorded a 1% loss, while the Nasdaq declined by 3.5%. The Dow, however, managed to gain nearly 1%. February was particularly rough for the Nasdaq, which saw a 4% drop—the largest monthly loss since April 2024. The S&P 500 and Dow Jones also struggled, falling 1.45% and 1.6%, respectively, for the month.
Federal Reserve’s Next Move
With ongoing inflation concerns and slowing consumer spending, the Federal Reserve’s future policy decisions remain a key focus for investors. Market participants are currently pricing in two interest rate cuts by the end of the year, with expectations largely unchanged following the latest economic data.
Chicago Fed President Austan Goolsbee’s upcoming remarks are expected to provide further insight into the central bank’s stance on interest rates.
Volatility Index and Investor Sentiment
Amid the uncertainty, Wall Street’s fear gauge, the CBOE Volatility Index (VIX), hit a one-month high, closing at 21.26 points. Meanwhile, advancing stocks significantly outnumbered decliners within the S&P 500 by a ratio of 7.1 to one.
The S&P 500 recorded 39 new highs and 14 new lows, while the Nasdaq reported 43 new highs and 332 new lows.
Outlook for Investors
Despite political tensions and economic uncertainties, the stock market’s ability to recover from early losses suggests resilience among investors. However, concerns over trade policies, inflation, and Federal Reserve decisions will continue to weigh on market sentiment in the coming weeks.
The potential impact of Trump’s trade policies, particularly tariff-related measures, remains a critical issue. Analysts caution that uncertainty surrounding these policies could cap further market gains until there is greater clarity on their implications.