United States markets tumbled on Friday, with the Dow marking its worst session of 2025 as fresh economic data heightened concerns over slowing growth and persistent inflation, prompting investors to seek safer assets.
The Dow Jones Industrial Average dropped 748.63 points, or 1.7%, to close at 43,428. The S&P 500 slid 1.7% to 6,013.1, while the Nasdaq Composite suffered the steepest decline, losing 2.2% to finish at 19,524.
For the week, the S&P 500 declined 1.7%, while the Dow and Nasdaq lost 2.5% apiece.
Investor sentiment took a hit following a string of disappointing economic indicators. The University of Michigan’s consumer sentiment index fell to 64.7 in February, a sharper-than-expected 10% decline, while the survey’s five-year inflation outlook reached 3.5%, its highest level since May 2021.
Additionally, existing home sales fell more than anticipated to 4.08 million units, and the U.S. services purchasing managers’ index (PMI) slipped into contraction territory, according to S&P Global.
Sector-wise, consumer staples was the only major segment of the S&P 500 to close higher, while consumer discretionary and technology stocks recorded the steepest losses.
UnitedHealth dropped 7.2% following a Wall Street Journal report of a Department of Justice probe into its Medicare billing practices.
Payment firm Block plunged 17.7% after posting weaker-than-expected fourth-quarter earnings, and Akamai Technologies fell 21.7% due to a disappointing revenue forecast for 2025.
Walmart fell 2.5%, extending weekly declines to 8.9% following a weak earnings forecast.
High-profile tech names such as Nvidia and Palantir also shed 4.5% and 4.6%, respectively.
In contrast, defensive stocks Procter & Gamble gained 2.8%, General Mills lifted 3.1%, and Kraft Heinz advanced 3.2%.
Concerns over policy changes added to market volatility. President Donald Trump signalled plans to impose new tariffs on lumber and forest products, in addition to proposed duties on imported cars, semiconductors, and pharmaceuticals.
Over the weekend, Warren Buffett's Berkshire Hathaway reported a record operating profit in the fourth quarter, marking its third consecutive year of annual growth amid stronger underwriting and higher investment income in its insurance division.
On the bond markets, 10-year and 2-year rates lost 1.7% apiece to 4.431% and 4.198%, respectively.
