US stocks fell on Friday as investors reacted to the threat of more possible tariffs from the Trump administration while digesting a jump in consumer expectations for inflation and an overshadowed monthly jobs report.
The S&P 500 (^GSPC) moved almost 1% lower, while the tech-heavy Nasdaq Composite (^IXIC) slid around 1.4%, both finishing their second week of consecutive losses. The Dow Jones Industrial Average (^DJI) also fell more than 400 points, or almost 1%, to register its worst daily performance in roughly four weeks.
At the White House on Friday, President Donald Trump said he would soon announce a plan on reciprocal tariffs on American imports. The comments were made during a meeting with Japan’s Prime Minister Shigeru Ishiba, during which Trump also said tariffs on Japan were an option.
The major gauges slid earlier into the red after US consumer sentiment sank to a seven-month low in early February, undershooting forecasts. Inflation expectations jumped amid concerns about Trump’s tariff threats.
Americans now expect an inflation rate of 4.3% over the next year, a full percentage point higher than last month, the University of Michigan survey found.
The 10-year Treasury (^TNX) yield rose to a session high of 4.5% in the wake of the sentiment update and the monthly jobs report. That report saw US economy added 143,000 jobs in January, missing economist expectations, but still showing signs of resilience in the labor market. Unemployment ticked down to 4.0%, from 4.1% in December.
Meanwhile, Amazon (AMZN) stock fell 4% after the e-commerce giant joined Google (GOOG) and other AI-focused Big Tech companies in disappointing Wall Street with its revenue outlook.
LIVE COVERAGE IS OVER 16 updates Fri, February 7, 2025 at 9:03 PM UTC
Dow, S&P 500, Nasdaq close week down amid inflation, tariff fears
US stocks fell, with the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) registering their second consecutive week of losses amid rising concerns over tariffs and inflation.
The S&P 500 fell roughly 1%, while the tech-heavy Nasdaq slid around 1.4%. The…
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