Dow tumbles 200 points on tariff and inflation fears, Nasdaq falls 1% led by Amazon
Stocks moved lower on Friday as a mix of news related to tariffs and inflation worried traders to close out the week.
Major benchmarks took a leg lower during the session after Reuters reported that President Donald Trump was planning reciprocal tariffs on trading partners, citing sources familiar. This could mean raising tariff levels across the board to equal rates charged the U.S.
The Dow Jones Industrial Average fell 266 points, or 0.6%. The S&P 500 traded down by 0.7%, and the Nasdaq Composite slid by 1%. Friday’s losses wiped out most of the gains for the week by the major averages.
The stock market was already on edge before the Trump trade headline following some consumer sentiment and jobs data that pointed to pick-up in inflation and spiked the 10-year Treasury yield above 5%.
Consumer sentiment fell in February to 67.8, according to a preliminary reading of the University of Michigan’s consumer sentiment index. Economists polled by Dow Jones had expected 71.3.
But perhaps more concerning was that the report’s respondents anticipate the one-year inflation rate to hit 4.3%, marking a rise of one percentage point from the previous month and its highest level since November 2023.
Also released on Friday, January’s jobs report showed unemployment rate fell to 4% from 4.1% and that average hourly earnings for January were higher than expected.
“Today’s employment report probably keeps the Fed on hold for probably one more meeting,” said Bryce Doty, senior portfolio manager at Sit Investment Associates.
Amazon lost 4% after guidance from the e-commerce giant disappointed investors. The company called for revenue growth of 5% to 9% in the first quarter — its weakest growth on record. The outlook overshadowed top- and bottom-line beats in the fourth quarter. Alphabet continued to fall following somewhat disappointing results earlier in the week.
It’s been a volatile week. Stocks fell on Monday after President Donald Trump over the weekend announced 10% tariffs on China. He also proposed, then later paused, 25% levies on Canada and Mexico. The S&P 500 then gained for three-straight days on the tariff reprieve before falling again on Friday.(Cay)
Source: CNBC
