U.S. Stocks Plunge Amid Tariff Concerns and Economic Uncertainty; Dow Drops Nearly 750 Points
On Friday, U.S. stock markets experienced significant declines as escalating concerns over President Donald Trump’s trade policies and their potential impact on the economy rattled investors. The Dow Jones Industrial Average fell by 748.63 points, or 1.7%, closing at 43,428.02. The S&P 500 also dropped 1.7%, losing 104.39 points to end at 6,013.13, while the Nasdaq Composite tumbled 2.2%, shedding 438.36 points to close at 19,524.01.
The market downturn was exacerbated by several weaker-than-expected economic reports. A preliminary release from S&P Global indicated that U.S. business activity is nearing stagnation, with growth slowing to a 17-month low. The report highlighted that optimism among service sector businesses has diminished, largely due to concerns over federal policies, including tariffs and geopolitical developments.
Additionally, the University of Michigan’s consumer sentiment index revealed that consumers are bracing for higher inflation, partly attributed to potential tariffs that could elevate prices on various imports. The survey showed that consumers expect prices to rise by 4.3% over the next year, a significant increase from the 3.3% forecasted in the previous month.
The Russell 2000 index, which tracks smaller companies more susceptible to domestic economic shifts, experienced a sharper decline of 2.9%, reflecting widespread apprehension among investors. Sectors such as technology, airlines, and metals were notably impacted. For instance, United Airlines saw its stock drop by 6.4%, and Newmont Mining fell by 5.7%.
In the bond market, Treasury yields decreased following the release of the economic reports, signaling broader economic concerns. The yield on the 10-year Treasury note fell to 4.42% from 4.51% the previous day.
Despite the day’s losses, the stock market remains near its all-time highs, and analysts do not foresee an imminent recession. However, the combination of trade policy uncertainties and signs of economic slowing has introduced increased volatility and caution in the markets.
Source : Swifteradio.com
