American actions fell sharply on Friday after reports showed that concerns among consumers and businesses about the President ofOnald Trump Politicians can strike the American economy.
The S&P 500 sank 1.7% for its worst day in two months. The industrial average of Dow Jones dropped by 748 points, or 1.7%, and the composite Nasdaq dropped by 2.2%.
The losses have accelerated during the continuation of several lower than expected reports on the economy. A suggested American commercial activity is about to block, growth slowing down to a 17 -month hollow. The preliminary report of S&P Global said that the activity has decreased unexpectedly for American services companies, and many members of the survey reported a fall in optimism due to concerns for Washington.
“Companies report widespread concerns about the impact of federal government policies, ranging from discounts of expenditure to prices and geopolitical developments,” said Chris Williamson, chief economist of S&P Global Market Intelligence. “Sales would have been affected by the uncertainty caused by the evolution of the political landscape, and the prices are increasing in the middle of the price increases linked to the prices of suppliers.”
A separate report indicates that American consumers are also preparing for higher inflation, partly due to potential rates that could increase prices of all kinds of imports. According to an investigation, according to a survey by the University of Michigan. This corresponds to the preliminary data of the survey earlier this month.
Among American households, however, a fracture is obvious below the surface. Inflation expectations are increasing for political self -employed and democrats, while lowering slightly for Republicans.
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A third economic report, on the other hand, said that previously occupied houses were lower last month than economists expected. Relatively high mortgage rates, as well as expensive prices for houses, harm sales.
Admittedly, the American stock market is still in place for the young year so far and is not far from its high set of all time earlier this week.
Almost no one at Wall Street provides a recession of any time. But Friday’s reports raise concerns regarding a remarkably resilient economy, and losses to Wall Street were widespread.
The actions of the smallest companies, whose profits can be more closely linked to the strength of the American economy than the major multinational rivals, have dropped more than the rest of the market. The Russell 2000 index of small shares fell 2.9%.
In large companies in the S&P 500 index, 3 actions out of 4 fell. Everything, large technological actions that have been submitted in the middle of the frenzy of artificial intelligence to airlines, including metal societies. Nvidia sank 4.1%. United Airlines lost 6.4% and Newmont Mining fell 5.7%.
Akamai Technologies experienced the strongest drop in S&P 500, even if the Cybersecurity and Cloud Computing company declared a greater profit for the last quarter that analysts were waiting for it. He lost a fifth of his value and dropped by 21.7% while investors rather focused on his income forecasts and other financial measures this year to come, who did not reach the analysts’ expectations .
On the winning side of Wall Street was Celsius Holdings, which sells energy drinks “better for you”. He jumped at 27.8% after saying that she had agreed to buy Alani Nu, a drinking company that focuses on female customers. Analysts called the purchase price, $ 1.65 billion in tax effects, reasonable and declared that the agreement should quickly be added to the benefits of Celsius, which also reported its latest quarterly results.
The other winners included actions of companies that can provide more stable profits, regardless of the strength of the American economy. American water water works increased by 3.1%, for example.
All in all, the S&P 500 fell from 104.39 points to 6,013.13. The industrial average of Dow Jones fell from 748.63 to 43,428.02, and the NASDAQ composite flowed 438.36 points to 19,524.01.
Before Friday’s net drop, the S&P 500 has been heading for a week of almost zero movement for a week of movement. Helping to raise actions had been a regular parade of better than expected profit reports. This has helped to compensate for the concerns of stubbornly high inflation, which could prevent the federal reserve from providing more relief for the economy and the financial markets thanks to lower interest rates.
The Fed maintained its stable main interest rate after having cut it sharply until the end of last year. During their last political meeting in January, Fed officials suggested that they could remain on hold for a while, the concerns of the way the prices offered by Trump and the mass deportations of migrants, as well as Other factors could push inflation.
Although lower rates can increase the economy, they can also encourage expenses that exert upward pressure on inflation.
Treasury yields fell on the bond market after the lowest than expected economic reports on Friday. The yield on the 10 -year treasure increased to 4.42% against 4.51% Thursday evening.
In stock markets abroad, the indices were mixed in Europe after reaching a large part of Asia.
The Hang Seng of Hong Kong jumped 4% for one of the largest movements in the world, stimulated by an increase in the Alibaba electronic commerce company, which declared a higher profit for the end of last year that foreseen. He also talked about his artificial intelligence developments.
& Copy 2025 the Canadian press