Major United States benchmark averages fell sharply on Friday as inflation worries and renewed trade tensions rattled investors, capping off a volatile trading week.
The Dow Jones Industrial Average and S&P 500 dropped 1% each, to close at 44,303.4 and 6,026, respectively, while the Nasdaq Composite slid 1.4% to end at 19,523.4.
For the week, the Dow and Nasdaq lost 0.5% apiece while the S&P 500 eased 0.2%.
Tech shares were among the biggest losers, with Amazon falling 4.1% after providing disappointing first-quarter guidance.
Alphabet also declined 3.3%, extending losses from earlier in the week after underwhelming results.
Stocks took a sharp downturn after President Donald Trump announced plans for "reciprocal trade" measures, suggesting the U.S. could impose tariffs matching those levied by its trading partners.
Before Trump's remarks, investors were already on edge due to signs of rising inflation. The University of Michigan's preliminary consumer sentiment index fell to 67.8 in February, well below the 71.3 forecasted by economists.
More concerning was the sharp rise in one-year inflation expectations, which climbed to 4.3% - the highest level since November 2023.
Adding to inflation concerns, the latest jobs report showed the unemployment rate declined to 4.0%, while average hourly earnings rose more than expected in January.
Friday’s drop capped a choppy week for markets. Stocks initially fell on Monday after Trump announced 10% tariffs on China and proposed, then later paused, 25% levies on Canada and Mexico.
On the bond markets, 10-year and 2-year rates were up 1.3% and 1.8% to 4.493% and 4.291%, respectively.
