The US stock market is experiencing a downturn, with the Dow Jones Industrial Average and Nasdaq Composite suffering their worst weekly performances of the year. The S&P 500 dropped 1.7%, its second-biggest weekly decline this year. Economists point to worries about the economy, including weaker consumer sentiment and slower-than-expected manufacturing activity.
Weaker inflation expectations for the next year also contributed to the losses. The University of Michigan’s consumer sentiment index came in lower than expected, while S&P Global reported a slowdown in US manufacturing. Additionally, rising global trade tensions are putting pressure on companies.
Retail giant Walmart announced that it will not be spared from the effects of US tariffs on Mexican and Canadian imports, and expects earnings growth to slow. Analysts warn that investors should be cautious due to softer economic data and negative commentary on consumer spending.
Despite the declines, some experts remain optimistic. JPMorgan’s trading desk does not see panic selling, and Jefferies upgraded Nike to “buy” with a 50% upside prediction. However, economists are watching for more concerning trends, particularly if bullish patterns continue to fail.
Source: https://www.cnbc.com/2025/02/24/the-negatives-for-the-stock-market-are-quickly-building-up.html