Wall Street Stocks Fall as Investors Brace for Tariffs by President Donald Trump
Wall Street stocks fell early Friday as investors braced for additional tariffs by US President Donald Trump next week. At the same time, a crucial indicator of underlying inflation came in hotter than anticipated.
Ten minutes into trading, the broad-based S&P 500 Index fell to 5,684.32, while the Dow Jones Industrial Average fell 0.2 per cent to 42,233.99. The technology-focused Nasdaq Composite Index took a 0.4 per cent loss, standing at 17,741.72.
Christopher Low of FHN Financial stated that economic data caused the market to react early on Friday. Last month’s price increase of 0.4 per cent over January was more than anticipated for the personal consumption expenditures (PCE) price index, which does not include volatile food and energy expenses.
The PCE price index, a preferred inflation indicator of the Federal Reserve, increased 2.8% over the previous year, slightly higher than analysts had predicted. Low of FHN Financial stated that consumer spending was “quite weak” due to the January weather.
The importance of consumers in propelling the US economy is evident in these consumer expenditure figures, which reflect the period when Trump was in office. Low added, “If confidence is rattled, if consumers are nervous, that potentially has a big impact.”
Investors are also monitoring Trump’s promised reciprocal tariffs, set to be implemented on April 2, targeting partners and nations with trade deficits with the US. The uncertainty surrounding these tariffs is contributing to the market volatility.
