New York – USA shares fell sharply on Friday after reports that fears among consumers and companies about President Donald Trump Rules can hit the US economy.
S&P 500 sank 1.7% for the worst day in two months. The industrial average Dow Jones fell by 748 points, i.e. 1.7%, and the NASDAQ composite dropped by 2.2%.
The losses accelerated during the day after a few weaker than expected reports regarding the economy. One suggested us Business activities are close to draggingwith an boost slowed down to a 17-month low level. The initial S&P Global report said that activity unexpectedly shrunk for American service companies, and many in the survey reported optimism due to worries about Washington.
“Companies report widespread concerns about the impact of federal government policy, from cuts to tariffs and geopolitical development,” said Chris Williamson, chief business economist at S&P Global Market Intelligence. “Apparently, sales are subject to uncertainty caused by a changing political landscape, and prices are rising in connection with price increases related to the tariff from suppliers.”
AND separate report They said that American consumers are also preparing higher inflationpartly due to potential tariffs maybe Lift prices for all types import. Basically, they expect prices to be 4.3% higher for 12 months, which is a large jump than the forecast by 3.3% inflation last month, in accordance with the study conducted by the University of Michigan. It fits Preliminary data In the survey at the beginning of this month.
However, among American households, the division is noticeable below the surface. Expectations for inflation are growing for independent political and democrats, while slightly falling for Republicans.
Meanwhile, the third economic report said that sales were previously occupied The houses were weaker Last month than economists expected. Relatively high mortgage ratesTogether with exorbitant houses, they hurt sales.
Of course, the American stock market is so far in youthful and is not far from it High all time set at the beginning of this week. Virtually nobody on Wall Street forecasts a recession in the near future. But Friday reports arouse concerns about the extremely resistant economy, and the losses on Wall Street were common.
Actions of the smallest companies, whose profits can be more related to the strength of the American economy than gigantic international rivals, have fallen more than the rest of the market. The petite Russell 2000 shares rate has fallen to the market by 2.9%.
In gigantic companies, the S&P 500 3 index fell on 4 shares. Everything from gigantic technological stocks that were auctioned among Crazy artificial intelligence to airlines for metal companies. Nvidia sank 4.1%. United Airlines lost 6.4%, and Newmont mining dropped by 5.7%.
Akamai Technologies had the sharpest decrease in the S&P 500, despite the fact that a company dealing with cyber security and cloud processing has reported more profit in the last quarter than the analysts expected. He lost one -fifth of his value and fell by 21.7%, because investors focused on their forecasts regarding revenues and other financial resources in the coming year, which did not meet the expectations of analysts.
On the winning Wall Street side there were Celsius Holdings, which sells energy drinks “better for you”. 27.8% jumped after he said that he agreed to buy Alani Nu, a company with drinks that focuses on customers. Analysts called the purchase price, $ 1.65 billion net tax effects, reasonable and found that the contract should quickly boost profits for Celsius, which also reported his latest quarterly results.
Other winners are shares of companies that can provide more stable profits regardless of the US economy. For example, the American tool increased by 3.1%.
To sum up, the S&P 500 dropped by 104.39 points to 6 013.13. The industrial average Dow Jones dropped by 748.63 to 43 428.02, and the composite composite of NASDAQ sank 438.36 points to 19 524.01.
Before Friday, S&P 500 was a week of almost zero traffic. Help in raising inventory was a enduring parade of better than expected profit reports. Which helped balance the fears stubbornly high inflationwhich can prevent Federal reserve from providing a greater relief for the economy and financial markets through lower interest rates.
The Fed maintains its main interest rate stable after a acute limitation of it to the end of last year. On them Last political meeting in JanuaryFed officials suggested that they could stay for a while He is worried about how the proposed Trump tariffs And mass migrants deportations, along with other factors, can press on inflation.
Although lower rates can boost the economy, they can also encourage expenses that exert pressure on inflation.
Treasury arms have fallen on the bond market after Friday, weaker than the expected economic reports. The profitability of the 10-year treasure fell to 4.42 % from 4.51 % at the end of Thursday.
In stock markets abroad, indexes were mixed in Europe after the major part of Asia.
Hang Seng’s Hong Kong jumped by 4% on one of the biggest movements in the world, increased by rapid growth E-commerce Alibaba companywho reported a greater profit at the end of last year than expected. He also talked about it Artificial intelligence development.
