U.S. Stocks Tumble As Companies And Consumers Worry About Washington – HuffPost

NEW YORK (AP) – US stocks fell sharply on Friday. President Donald Trump Policies may be at odds with the US economy.

The S&P 500 sank 1.7% on the worst day of two months. Dow Jones' industrial average fell 748 points (1.7%), while Nasdaq composites fell 2.2%.

The losses accelerated throughout the day after some weaker than expected reports about the economy. One suggested us Business activities are nearing stallinggrowth slows to a 17-month low. A preliminary report from S&P Global said it had unexpectedly reduced activity for U.S. services businesses, and many of the investigations reported that concerns about Washington were hampering optimism.

“We are committed to providing a range of services to our customers,” said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. “Revenues are reportedly hit by uncertainty caused by changes in the political landscape, with prices rising amidst tariff-related price increases from suppliers.”

a Individual reports US consumers also said they are preparing Higher inflationin part Potential tariffs That's possible Raise all kinds of prices Imported. According to a survey from the University of Michigan, they are very hopeful that prices will rise 4.3% in 12 months. That fits it Preliminary data In a survey earlier this month.

However, disparities are apparent among US households beneath the surface. Hopes for inflation are rising for political independence and Democrats, but slightly declined for Republicans.

Meanwhile, the third economic report stated that previously occupied sales The house was weak More than the economists expected last month. Relatively high mortgage feesalong with the expensive prices of the house, it hurts sales.

Certainly, the US stock market has been continuing to be young so far, and is not far from it The best ever It will be set earlier this week. Virtually no one on Wall Street is predicting a recession any time soon. However, Friday's report raised concerns about what is a significantly more resilient economy, and Wall Street's losses were widespread.

The smallest companies' stocks, where profits may be closely tied to the strength of the US economy than their large multinational rivals, fell more than other markets. The Russell 2000 minority index has removed the market-leading 2.9%.

Among the large S&P 500 Index companies, three out of three of the four shares fell. Everything from major high-tech stocks bidded during Artificial intelligence frenzy It dropped on airlines and metals companies. Nvidia sank 4.1%. United lost 6.4% and Newmont Mining fell 5.7%.

Akamai Technologies fell the most sharply on the S&P 500, despite cybersecurity and cloud computing companies reporting profits in the most recent quarter than analysts expected. It lost a fifth of its value and fell 21.7% as investors instead focused on forecasts for next year's revenue and other financial metrics.

On the winning side of Wall Street was celsius Holdings, which sells “better” energy drinks. It jumped 27.8% after saying it agreed to buy Alani Nu, a beverage company focused on female customers. Analysts call the purchase price, the net net of the $1.65 billion tax effect reasonable, saying Celsius should immediately add profits to Celsius, and also reported the latest quarter results. did.

Other winners included stocks from companies that could provide more stable profits regardless of the strength of the US economy. For example, plumbing in the United States rose 3.1%.

The S&P 500 fell to 6,013.13 to 104.39 points. The Dow Jones industrial average fell from 748.63 to 43,428.02, with Nasdaq composite sinking 438.36 points to 19,524.01.

Before the sharp drop on Friday, the S&P 500 was heading for a week of near-zero movement. Helping to lift stocks was a steady parade of profit reports that were better than expected. It helped to offset the worries Stubbornly high inflationit can prevent Federal Reserve Provides More Relief For the economic and financial markets through low interest rates.

The Fed has stabilized its key interest rates after a sharp cut until the end of last year. To them The final policy meeting in JanuaryFed officials suggested that it could be on hold for a while. Giving concerns about how the tariffs Trump proposed are being proposed And the massive deportation of immigrants, along with other factors, could be heading upwards on inflation.

Lower rates can boost the economy, but they can also encourage spending that puts upward pressure on inflation.

Treasury yields fell in the bond market following a weaker economic report on Friday. The 2010 Treasury yield sank to 4.42% from 4.51% in the second half of Thursday.

Overseas stock markets had mixed indexes in Europe after much of Asia rose.

Hong Kong's Hangsen jumped 4% to one of the world's biggest moves. e-commerce company Alibabareported that profits at the end of last year were stronger than expected. I also talked about it artificial intelligence development.

AP business writers Eurikeyama and Matt Ott contributed.