Wall Street’s gains on Friday were tempered by the White House’s confirmation that Donald Trump’s tariffs against major US trading partners will take effect Saturday.
Investors reevaluated the risks associated with trade tensions. The S&P 500 fell 0.6%. Dow Jones Industrial Average dropped 345 points (0.8%). Nasdaq Composite also declined 0.4%.
Stocks are being sold off as a result of tariffs
After White House Press Secretary Karoline Lavitt’s announcement that Trump would announce his 25% tariffs against Canada, Mexico and Chinese imports this weekend, the market fell.
Stocks that have significant exposure to the region, like Constellation Brands, Corona’s parent, and Chipotle fell by 2% and 1 %, respectively.
Chevron, Exxon Mobil, and other energy stocks have also fallen, falling 4% and 3 % respectively after disappointing earnings for the fourth quarter.
Meanwhile, Apple initially rallied on stronger-than-expected services revenue, despite weak iPhone sales, but later gave up gains to trade 1% lower.
The markets wrap up an extremely volatile month and week
The major indices recovered some of the ground lost Monday in a tech-driven selloff.
Nasdaq composite, after falling 3.07% in earlier weeks amid worries about China’s DeepSeek AI start-up, has now reduced its losses for the week to just 1.7%.
The S&P 500 will likely drop 1% this week, while the Dow Jones is expected to end the week 0.2% higher.
Nvidia has recovered from its 17% drop on Monday to reduce weekly losses down to just 14%.
All three of the major indexes showed gains in January despite all the turmoil.
S&P 500 grew 2.6%. Nasdaq climbed 1.5%. Dow outperformed all with a monthly increase of 4.7%.
Fed on high alert as inflation data is released
The Federal Reserve preferred inflation indicator, the Personal Consumption Expenditures Price Index (PCE), was released on Friday. It showed a rise of 0.3% in December and a rate of 2.6% annually. This is consistent with what had been expected but slightly higher than November’s 2.4%.
Core PCE (excluding food and fuel) grew by 0.2% per month and 2.8% annually. This raises concerns over persistent inflation pressures.
Investors remain cautious as the market struggles with uncertainty surrounding trade policies, unexpected earnings and inflation signals.
The post US Markets Fall as Trump’s Tariffs Rumble Investors; S&P, Dow and Nasdaq Fall may be updated as new developments unfold.
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