Final answer:
The nurse would document the described reaction of a newborn to a loud noise as a positive Moro reflex, an important part of the newborn's neurological exam.
Step-by-step explanation:
When a newborn symmetrically abducts and extends the arms, fingers fan out to form a 'C' with thumb and forefinger, and there is a slight tremor in response to a loud noise, the nurse would document this as a positive Moro reflex. This reflex is a normal part of a newborn's neurological exam and indicates that the lower motor neurons (LMN) are functioning properly. The Moro reflex is distinct from the Babinski sign, which is another common superficial reflex tested during a neurological examination and involves the dorsiflexion of the foot and extension and splaying of the toes in response to stimulation of the plantar surface.