Major United States benchmark averages eased on Friday as investors braced for President Donald Trump’s tariffs on major U.S. trading partners over the weekend.
The Dow Jones Industrial Average slid 337.5 points, or 0.8% to end the session at 44,544.7, weighed down by losses in Chevron. The S&P 500 dropped 0.5% to close at 6,040.5, while the Nasdaq Composite also declined, slipping 0.3% to 19,627.4.
Markets initially gained but reversed course after White House press secretary Karoline Leavitt remarked that Trump’s tariffs would be publicly available for inspection on Saturday. The new trade measures impose a 25% tariff on Canadian and Mexican imports and a 10% tariff on Chinese goods.
In response, Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum announced retaliatory tariffs, with Canada’s set to begin Tuesday - the same day U.S. tariffs on Canadian imports take effect.
Meanwhile, China’s Ministry of Commerce stated it would file a complaint with the World Trade Organisation and implement countermeasures.
Apple remained in focus after exceeding fiscal first-quarter expectations, despite weak iPhone sales. However, services revenue growth provided some optimism, with the company slipping 0.7% on Friday.
Energy stocks also struggled, with Chevron and Exxon Mobil losing 4.6% and 2.5%, respectively, due to disappointing fourth-quarter results.
The three major indices had a volatile trading week, particularly in the technology sector. The Nasdaq Composite posted a weekly loss of 1.6%. The S&P 500 declined 1% for the week, while the Dow managed a modest 0.3% gain.
Nvidia, which tumbled nearly 17% on Monday, closed the week down 15.8%.
Among data releases, the latest personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, showed a 0.3% increase from November and a 2.6% annual rise.
While in line with expectations, this marked an acceleration from November’s 2.4% rate, raising concerns about persistent inflation. Core PCE, which excludes food and energy, rose 0.2% monthly and 2.8% year-over-year.
On the bond markets, 10-year and 2-year rates were at 4.543% and 4.207%, respectively.
