US stocks climbed into positive territory on Friday as investors weighed mixed messages from the Federal Reserve while President Donald Trump indicated he'd retain 'flexibility' when it comes to a reciprocal tariff plan set for April 2.
The Dow Jones Industrial Average (^DJI) edged above the flat line while the S&P 500 (^GSPC) rose 0.1%. The tech-heavy Nasdaq Composite (^IXIC) gained 0.5%. All three major averages fell by nearly 1% earlier in the session.
The S&P 500 and Nasdaq, both of which entered correction territory during a downbeat start to 2025, snapped four-week losing streaks.
Stocks came off their session lows after Trump said, "I don't change. But the word 'flexibility' is an important word," in response to the question of a retaliatory tariff plan expected on April 2.
Most of this week's gains came after a stock market rally followed the Fed's decision on Wednesday to stay the course for two more rate cuts this year .
Fed Chair Jerome Powell also reassured investors that the economic impact of Trump's trade war seemed manageable, adding that recession risks remain low.
Read more: The latest on Trump's tariffs
However, by Thursday, the underbelly of the Fed's decision — which included forecasts for higher inflation and lower economic growth, two concerns that have deeply rattled markets — started to weigh on Wall Street, sending stocks lower .
And more companies have said they are feeling the effects of tariff-related uncertainty as earnings continue to trickle out.
FedEx ( FDX ) and Nike ( NKE ) stocks plummeted on Friday as investors reacted to comments from both companies about the economic outlook, with FedEx slashing its 2025 forecast and Nike continuing to leave gaps in its outlines for a turnaround.
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