US Stock Market Falls Sharply as Businesses and Consumers Worry About Tariffs
The US stock market is experiencing a sharp decline on Friday, with the S&P 500 down 1.3% in afternoon trading. The Dow Jones Industrial Average fell 665 points, or 1.5%, while the Nasdaq composite lost 1.5%.
Reports from the US economy have raised concerns about President Donald Trump’s policies and their impact on businesses and consumers. One report showed that US business activity is nearing stall-speed, with growth decelerating to a 17-month low. Another report found that US consumers are expecting higher inflation due to potential tariffs.
The decline in stock market comes despite better-than-expected profit reports from some companies. Akamai Technologies reported stronger profits than analysts expected, but its revenue forecasts fell short. UnitedHealth Group’s stock price dropped after the US Department of Justice launched an investigation into its Medicare billing practices.
However, there were some positive news stories on Wall Street. Celsius Holdings leaped 27.2% after announcing its plan to buy Alani Nu, a beverage company that focuses on female customers. Analysts praised the deal as reasonable and expected it to quickly add to profits for Celsius.
The decline in stock market is also influenced by minutes from the Federal Reserve’s last policy meeting, which suggested officials may keep interest rates steady due to worries about potentially stubborn inflation. In other news, Treasury yields eased in the bond market after weaker-than-expected economic reports. The yield on the 10-year Treasury sank to 4.41% from 4.51%.
In stock markets abroad, indexes were mixed, with Hong Kong’s Hang Seng jumping 4% driven by a surge for e-commerce firm Alibaba.
Source: https://apnews.com/article/stock-markets-earnings-economy-fed-cb7171a5bb3bc3d64c9247454d753d06