U.S. stocks rebounded on Friday as investors hunted for bargains at the end of a tumultuous week in which U.S. President Donald Trump's escalating trade war fueled recession fears and doused risk appetite.

A broad rally boosted all three major U.S. stock indexes to solid gains, with recently battered tech-related megacaps enjoying a comeback. Every one of the so-called Magnificent 7 artificial intelligence-related momentum stocks advanced, although six of them remain down on the year.

Market Snapshot

The Dow Jones Industrial Average rose 674.62 points, or 1.65%, to 41,488.19. The S&P 500 advanced 117.42 points, or 2.13%, to 5,638.94 and the Nasdaq Composite gained 451.07 points, or 2.61%, at 17,754.09.

Market Movers

Tesla - Tesla gained 3.9% at $249.98. The electric-vehicle company,in a letter to the White House dated March 11, said the Trump administration’s tariff war could make it more expensive for it to build vehicles in the U.S. “Trade actions should not (and need not) conflict with objectives to further increase and support domestic manufacturing,”the company said in the letter. Tesla CEO Elon Musk serves as an adviser to President Donald Trump. Tesla shares declined 3% on Thursday after rising 7.6% on Wednesday and 3.8% on Tuesday.

Separately, analysts at Wells Fargo reduced their price targeton Tesla to $130 from $135 and maintained an Underweight rating on the shares. Wells Fargo noted thesignificant sales dropin the company’s European sales.

Nvidia - Nvidia rose 5.3% after results from key supplier Foxconn appeared to be giving shares of the leading maker of artificial-intelligence chips a lift. Coming into Friday, Nvidia has declined 14% this year. Mizuho analysts cut their price target on the stock to $168 from $175 but called the company’sdeveloper conferencenext week a “major catalyst ahead.” Fellow chip maker Micron Technology gained 6.2%.

Palantir - Palantir Technologies rose 8.3%. The data-analytics company has declined 29% since Feb. 19, the date of the S&P 500’s record closing high. The stock’s lofty valuation, broader tech sector weakness, and reports that Trump may cut defense spending all have been factors. The company has several military contracts for the use of its technology. 

D-Wave Quantum - D-Wave Quantum skyrocketed 46.9% to $10.15 after rising 19% on Thursday. Wall Street analysts saidD-Wave has emerged as a leader in the quantum-computing space. For example, Piper Sandler analysts raised their price target on the stock by 220% to $8 from $2.50 and reiterated an Overweight rating.

Li Auto - Li Auto, the Chinese EV maker, reported fourth-quarter earnings and revenue that beat analysts’ estimates but issued afirst-quarter revenue forecastthat was below expectations. U.S.-listed shares of Li Auto fell 4.4%.

Docusign - Docusign reported fiscal fourth-quarter adjusted earnings that topped Wall Street estimates, sending shares of the e-signature company up 14.8%. The company said Docusign IAM, its artificial-intelligence-powered agreement management platform, was “driving rapid traction with customers.” Subscription revenue in the quarter rose 9% from a year earlier and billings increased 11%. Docusign said it expects fiscal 2026 revenue of $3.13 billion to $3.14 billion versus analysts’ estimates of $3.15 billion.

Ulta Beauty - Fourth-quarter earnings at Ulta Beauty, the cosmetics retailer, beat analysts’ estimates as net sales fell 1.9% to $3.5 billion but also topped forecasts. Same-store sales rose 1.5% and beat estimates for growth of 0.8%. For the fiscal year ending in January,Ulta Beauty said it sees net sales ranging from $11.5 billion to $11.6 billion and earnings in the range of $22.50 to $22.90 a share, with both metrics below analysts’ expectations. The stock climbed 13.7% higher.

Rubrik - Rubrik reported a narrower-than-expected fourth-quarter loss as revenue beat analysts’ expectations, and the data security company issued abetter-than-anticipated fiscal 2026 outlook. The stock soared 27.8%.

Applied Optoelectronics - Applied Optoelectronics, the maker of optical communications products, jumped 39.3% to $22.11 after issuing a stock warrant to Amazon.com that would allow the tech and online retailing giant to purchase up to 7.95 million shares at about $23.70 a share.

ServiceTitan - ServiceTitan, the cloud-based software platform, posted fourth-quarter adjusted earnings that topped analysts’ estimates on revenue of $209.3 million, up 29% from a year earlier and better than forecasts of $200.1 million. The stock was up 13%.

Semtech - SemTech jumped 21.1% after the chip company reported fourth-quarter adjusted earnings of 40 cents, better than analysts’ expectations of 32 cents, as revenue rose 30% to $251 million, topping estimates of $249 million. The company said it expects fiscal first-quarter revenue of $245 million to $255 million, compared with analysts’ expectations of $250.9 million.

PagerDuty - PagerDuty posted fourth-quarter adjusted earnings of 22 cents a share on revenue $121.4 million, beating estimates for earnings of 16 cents on revenue of $120 million. The maker of cybersecurity software also said its board authorized a new stock buyback program of up to $150 million in common stock. Shares rose 17.8%.

Peloton - Peloton Interactive rose 16.1% to $7.05. Canaccord analysts upgraded shares of the at-home-fitness company toBuy from Holdand left their price target unchanged at $10. “Peloton is the clear leader in the connected fitness industry, which they invested in early on and built a 6M loyal member base that has a high-margin recurring revenue stream,” the analysts said in a research note.

Market News

US Averts Government Shutdown as Senate Passes GOP Spending Bill

The Senate passed a Republican spending plan Friday, averting a US government shutdown hours before a midnight deadline while exacerbating a furious struggle within the Democratic party over how to confront Donald Trump.

Senate Democratic leader Chuck Schumer and a handful of other Democrats helped the Republican majority overcome a crucial procedural obstacle and pave the way for the funding’s approval.

Their actions relinquished what some believed was the party’s best leverage to impose constraints on Trump and Elon Musk’s mass firings of federal workers and wholesale elimination of federal agencies. Opponents will have to look instead to the courts.

US Consumer Sentiment Plunges on Tariff Fears, Inflation Expectations Jump

U.S. consumer sentiment plunged to a nearly 2-1/2-year low in March and inflation expectations soared amid worries that President Donald Trump's sweeping tariffs, which have ignited a trade war, would boost prices and undercut the economy.

The deterioration in sentiment and inflation expectations reported by the University of Michigan Surveys of Consumers on Friday was across political party affiliation, with consumers saying "frequent gyrations in economic policies make it very difficult for consumers to plan for the future."

That mirrors similar concerns in some business surveys. The uncertainty created by Trump's on- and off-again tariffs as well as an escalation in trade tensions risks derailing the economic expansion. Fears of higher prices, which drove consumers' long-term inflation expectations to levels last seen in early 1993, create a challenge for Federal Reserve officials as they consider the next steps for monetary policy.