Wall Street Rebounds Amid Economic Jitters and Middle East Tensions

Wall Street's main stock indexes showed gains on Friday, recovering from heavy losses the previous day. Investors were analyzing various economic data sets to determine the Federal Reserve's stance on interest rates while dealing with widening Middle East tensions.

A report from the Commerce Department indicates that economic growth in the last quarter of 2024 decelerated more than originally anticipated due to lower consumer spending and business investment. Another report reflected a modest rise in consumer spending for January.

Despite the economic data, expectations for one 25-basis-point rate cut by the Federal Reserve this year remain unchanged. Inflation concerns persist, fueled by potentially rising energy prices. The Dow Jones, S&P 500, and Nasdaq displayed gains in early trading, while tensions in the Middle East and energy price surges add layers of complexity to economic forecasts.