US stock markets plummeted on Friday, with the Dow Jones Industrial Average falling 748 points or 1.7%, as investors became increasingly fearful of rising inflation and President Donald Trump’s tariffs. The broader S&P 500 also sank 1.7% and the Nasdaq dropped 2.2%.
A new economic report from the University of Michigan showed that US consumer sentiment declined in February for the second consecutive month, with Americans losing confidence in the economy due to worries over Trump’s tariffs potentially jacking up prices. The survey found that nearly two-thirds of US adults nationwide felt Trump wasn’t doing enough to address inflation.
The fears about inflation were also reflected in a CNN poll released earlier this week, which showed that nearly 62% of US adults believed Trump wasn’t addressing the issue effectively. Additionally, consumer spending accounts for more than two-thirds of the US economy, making weak consumer sentiment a significant concern.
Weakening economic data and job growth have raised concerns about a potential recession, although no evidence suggests one is imminent. Housing sales also slowed in January, with prices reaching record highs, exacerbating America’s home affordability crisis.
Retailers such as Walmart warned of slower sales and profit growth due to consumer fears over rising prices and tariffs. UnitedHealth, a key Dow component, fell 7% after being investigated by the US Department of Justice for its Medicaid billing practices.
Despite the decline in stocks, they remain close to their all-time highs, with the S&P 500 hitting a record just a few days ago.
Source: https://edition.cnn.com/2025/02/21/investing/stock-market-dow-jones/index.html