Market Jitters: Stocks Climb Amid Uncertainty From Federal Rate Cuts and Tariffs

Stock indexes rose on Friday, recovering from earlier losses spurred by a disappointing U.S. jobs report and ongoing tariff uncertainties under President Trump's administration. The Federal Reserve's potential rate cuts added to market volatility alongside significant shifts in global currencies and government bond yields.

Stock indexes closed higher on Friday after Federal Reserve Chair Jerome Powell addressed concerns about the economic impact of the Trump administration's tariffs. Despite earlier losses prompted by fewer-than-expected job creations in the U.S., market expectations for rate cuts this year bolstered stocks and Treasury yields.

The euro achieved its best weekly performance since 2009, gaining 0.54% against the U.S. dollar. U.S. nonfarm payrolls reported an increase of 151,000 jobs for February, with a slight rise in unemployment, amid a week marked by confusion over U.S. trade policy and rising global borrowing costs.

Market uncertainty is magnified by Trump's imposition of 25% tariffs on Mexico and Canada, now delayed until April, alongside other potential tariffs. Investors anticipate the Federal Reserve's rate cuts to influence market dynamics further, adding to the fluctuating bond yields in Eurozone countries.

(With inputs from agencies.)