US benchmark equity indexes rebounded Friday amid expectations that a looming government shutdown would be avoided, though stock markets registered losses on the week.

The Nasdaq Composite increased 2.6% to 17,754.1 Friday, while the S&P 500 gained 2.1% to 5,638.9. The Dow Jones Industrial Average increased 1.7% to 41,488.2. All sectors closed higher, led by technology and energy.

"The market appears optimistic the US government can avoid a shutdown (Friday night) after Senate Democratic Leader Chuck Schumer reportedly dropped his objection yesterday to the latest spending bill proposal," Stifel said in a note.

The S&P 500 tumbled 1.4% on Thursday, driving the index down 10.1% from its most recent record close, entering a correction. For the week, the Dow slid 3.1%, while the S&P 500 and Nasdaq declined more than 2% each.

In economic news, US consumer sentiment slumped in March, while year-ahead inflation expectations reached the highest since November 2022 amid policy uncertainty, preliminary results from a survey by the University of Michigan showed Friday.

"Expectations for the future deteriorated across multiple facets of the economy," Surveys of Consumers Director Joanne Hsu said. "Many consumers cited the high level of uncertainty around policy and other economic factors."

On Thursday, US President Donald Trump said the White House will impose a 200% tariff on all alcohol products coming from the European Union if a European tariff placed on US whiskey is not rescinded. Canada and the EU recently announced retaliatory tariffs against the US.

Gold fell 0.2% to $2,982.92 per troy ounce Friday. Spot gold climbed past $3,000 for the first time earlier in the day. "Tariff concerns that risk higher inflation and slower economic growth are spurring demand for safe-haven assets like gold," ING said.

Silver was down 0.2% at $34.23 per ounce Friday.

US Treasury yields moved up, with the two-year rate rising seven basis points to 4.02% and the 10-year rate gaining 4.4 basis points to 4.32%.

In company news, Ulta Beauty (ULTA) shares jumped 14%, the top gainer on the S&P 500. Although the beauty retailer's full-year guidance missed Wall Street's estimates late Thursday, it showed potential for positive earnings revisions in the coming quarters, UBS said.

Crown Castle (CCI) was the second-best performer on the S&P 500 Friday, up 10%. The company has agreed to sell its small cells and fiber solutions businesses for a combined $8.5 billion to separate buyers after a strategic review.

Abbott Laboratories' (ABT) shares decreased 2.5%, the steepest decline on the S&P 500. The company is facing a retrial of a case alleging its formula milk was harmful to infants, on grounds of prejudiced or erroneous rulings in a state court in Missouri last year.

West Texas Intermediate crude oil increased 1% to $67.18 a barrel.