US households and businesses have already reported drops in confidence because of all the uncertainties created by Trump’s barrage of on -again, off -again tariff announcements and other policies. That’s raised fears about a pullback in spending that could sap energy from the economy.
Worries look to be only worsening among US households, according to a preliminary survey released Friday by the University of Michigan. Its measure of consumer sentiment sank for a third straight month, mostly because of concerns about the future rather than complaints about the present. The job market and overall economy look relatively solid at the moment.
“Many consumers cited the high level of uncertainty around policy and other economic factors,” according to Joanne Hsu, direct of the survey, and “frequent gyrations in economic policies make it very difficult for consumers to plan for the future, regardless of one’s policy preferences.”
Such fears have Wall Street focused on whether companies are seeing the souring mood of consumers translating into real pain for their businesses.
Ulta Beauty jumped 13.7 per cent after the beauty products retailer reported stronger profit for the latest quarter than analysts expected.
The company’s forecasts for upcoming revenue and profit fell short of analysts’ targets, but Chief Financial Officer Paula Oyibo said it wanted to be cautious “as we navigate ongoing consumer uncertainty.” Analysts said the forecasts appeared better than feared.
Gains for Big Tech stocks and companies in the artificial-intelligence industry also helped support the market. Such stocks have been under the most pressure in the recent sell-off after critics said their prices shot too high in the frenzy around AI.
Nvidia rose 5.3 per cent to trim its loss for 2025 so far below 10 per cent. Apple climbed 1.8 per cent to pare its loss for the week, which at one point had been on pace to be its worst since the 2020 COVID crash.
All told, the S&P 500 rose 117.42 points to 5,638.94. The Dow Jones climbed 674.62 to 41,488.19, and the Nasdaq composite rallied 451.07 to 17,754.09.
In stock markets abroad, indexes rose across much of Europe and Asia.
Stocks jumped 2.1 per cent in Hong Kong and 1.8 per cent in Shanghai after China’s National Financial Regulatory Administration issued a notice ordering financial institutions to help develop consumer finance and encourage use of credit cards, do more to aid borrowers who run into trouble and be more transparent in their lending practices.
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Economists say China needs consumers to spend more to get the economy out of its doldrums, although most have advocated broader, more fundamental reforms.
In the bond market, Treasury yields rose to recover some of their sharp recent losses. The yield on the 10-year Treasury climbed to 4.31 per cent from 4.27 per cent late Thursday and from 4.16 per cent at the start of last week.
Yields have been swinging since January, when the 10-year yield was approaching 4.80 per cent. When worries worsen about the US economy’s strength, yields have fallen. When those worries lessen, or when concerns about inflation rise, yields have climbed.
