U.S. stocks tumbled on Friday as businesses and consumers expressed growing concerns over the impact of tariffs on the economy. The Dow Jones Industrial Average plunged nearly 750 points, while the S&P 500 and Nasdaq composite also experienced significant losses. Several weaker-than-expected economic reports contributed to the sharp decline.
The Trump Effect | Markets react with mixed trends—tech stocks slide, Bitcoin holds strong, and crude takes a hit. ???????? #StockMarket #Investing pic.twitter.com/AVxmHeDjDt
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A preliminary report from S&P Global indicated that activity unexpectedly shrank for U.S. services businesses, with many respondents citing worries about federal government policies, including spending cuts and tariffs. Chris Williamson, chief business economist at S&P Global Market Intelligence, said, “Companies report widespread concerns about the impact of federal government policies, ranging from spending cuts to tariffs and geopolitical developments.”
Consumers are also bracing for price increases, partly due to import tariffs.
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A survey by the University of Michigan revealed that consumers expect prices to be 4.3% higher in 12 months, a significant jump from their previous forecast of 3.3% inflation.
Despite the downturn, the U.S. stock market remains up for the year and is not far from recent highs.
Dollar weakness continues this morning as illustrated by the 0.5% depreciation in the DXY index. #economy #markets pic.twitter.com/B469xhis1x
— Mohamed A. El-Erian (@elerianm) March 11, 2025
A survey by the University of Michigan revealed that consumers expect prices to be 4.3% higher in 12 months, a significant jump from their previous forecast of 3.3% inflation.
Despite the downturn, the U.S. stock market remains up for the year and is not far from recent highs. However, the losses were widespread, with 3 out of every 4 stocks in the S&P 500 index falling.
Dow tumbles amid tariff worries
However, the losses were widespread, with 3 out of every 4 stocks in the S&P 500 index falling.
Small company stocks, more closely tied to the strength of the U.S. economy, experienced the most significant declines. Treasury yields fell in the bond market following the weaker-than-expected economic reports, with the yield on the 10-year Treasury sinking to 4.42% from 4.51% late Thursday. While few on Wall Street are forecasting a recession shortly, the reports raise concerns about the resilience of the U.S. economy.
The Federal Reserve has held its primary interest rate steady after sharply cutting it last year, and officials have suggested they may maintain this stance for a while. In stock markets abroad, indexes were mixed in Europe after rising across much of Asia. Hong Kong’s Hang Seng jumped 4%, boosted by a strong profit report from a major technology company.
