Stocks rose higher on Friday, but the S&P 500 Index posted for its worst week since September, as President Donald Trump's trade policies rattled investors. The broader market index rose about 0.6%, while the Dow Jones Industrial Average added over 200 points and the Nasdaq Composite advanced 0.7%.

Here's how the market settled to close out the week:

S&P 500 Index (SPY  ): +0.55% or +31.68 points to 5,770.20

Dow Jones Industrial Average (DIA  ): +0.52% or +222.64 points to 42,801.72

Nasdaq Composite Index (QQQ  ): +0.70% or +126.97 points to 18,196.22

Despite the volatile session's recovery -- the Dow had lost more than 400 points at session lows -- all three major averages settled in the red for the week. The S&P 500 lost more than 3%, while the Dow Jones fell 2.4% for the week. The Nasdaq Composite underperformed the broader market, declining 3.5% and entering correction territory, trading below 10% from its recent all-time high.

In a speech before the U.S. Monetary Policy Forum, Federal Reserve Chair Jerome Powell said Friday that the central bank needs "greater clarity" on Trump's trade policies before changing its stance on interest rates.

The Trump administration "is in the process of implementing significant policy changes in four district areas: trade, immigration, fiscal policy and regulation," Powell said. "It is the net effect of these policy changes that will matter for the economy and for the path of monetary policy."

"Uncertainty around the changes and their likely effects remains high," Powell continued, adding that the Fed is "focused on separating the signal from the noise as the outlook evolves. We do not need to be in a hurry, and are well positioned to wait for greater clarity."

Nonfarm Payrolls rose by a weaker-than-expected 151,000 jobs in February, the Labor Department reported Friday, but still came in ahead of January's downwardly revised print of 125,000. The unemployment rate, meanwhile, ticked higher to 4.1%.

The report comes amid billionaire Elon Musk's Department of Government Efficiency (DOGE) efforts to cut the federal government, offering many federal employees buyout incentives and issuing mass layoffs across various departments. Federal government employment fell by 10,000 in February, but government payrolls overall rose by 11,000, according to the Labor Department.

"The upshot is that the labor market remains in decent shape and should be able to weather the DOGE-related cull of federal government employees, although we will have to wait until the next month to assess the damage," Thomas Ryan, economist at Capital Economics North America, wrote in a note to clients, quoted by Yahoo!Finance.

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JPMorgan analyst Matthew Boss downgraded Macy's (M  ) to a rating of Neutral from Overweight and trimmed the firm's price target to $14, citing the department retailer's business improvement efforts are "eroding the core retail operating income dollar base."

"Importantly, management noted the full-year outlook, including in the first quarter, reflects challenges from the external environment, including unfavorable weather to start the first quarter & uncertainty on tariffs/layoffs/macro, citing 'no question in our mind that the consumer has worsened based on a combination of macro factors,'" Boss wrote in a note to clients.