Stanchion
NEW YORK (AP) – U.S. stocks have fallen sharply after reports of concerns about the possibility that President Donald Trump’s policies are smashing into the economy. The S&P 500 sank 1.7% on Friday, the worst day in two months. Dow Jones’ industrial average fell by 1.7%, while Nasdaq’s composites fell by 2.2%. One report suggests that US business operations are nearing a stalling rate, and optimism is wandering due to concerns about tariffs and other potential policies from Washington. Reports on consumer sentiment and home sales have also been weaker than expected. Akamai Technology has been heavier in the market after giving financial forecasts that did not meet expectations. In the bond market, the Treasury yields fell.
This is a news update. Previous stories about the AP are as follows:
NEW YORK (AP) — U.S. stocks fell sharply Friday after concerns were raised about President Donald Trump’s policies could be smashed by the US economy.
The S&P 500 was heading for its worst day in two months, with a delayed trading down 1.7%. The Dow Jones industrial average fell 781 points (1.8%), while the Nasdaq composite was 2.2% lower, with trading in an hour.
The losses accelerated throughout the day after some weaker than expected reports about the economy. Business activity in the US is nearing a stall, suggesting growth will be 17 months lower. A preliminary report from S&P Global said it had unexpectedly reduced activity for its U.S. services business, with many of its investigations reporting that optimism is becoming unsettled due to concerns about Washington.
“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.”
According to another report, U.S. consumers are also preparing for higher inflation due to potential tariffs that could raise the prices of any kind of imported goods. According to a survey from the University of Michigan, they are very hopeful that prices will rise 4.3% in 12 months. This fits the preliminary data the survey proposed 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, a third economic report said last month that sales of previously occupied homes were weaker than economists had expected. The mortgage rate is relatively high, and the expensive prices of the home are damaging sales.
Certainly, the US stock market has still been on the younger years so far, not far from the best set of all time 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 dropped 2.9%, a market-leading one.
Within the large S&P 500 Index companies, almost four of the five shares fell. Metals companies have been removed, ranging from massive tech stocks bidded amid the artificial intelligence frenzy to airlines. Nvidia sank 3.3%. United lost 6.2% and Newmont Mining fell 4.7%.
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 20.9% 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 28.4% 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 what the US economy was doing. For example, American water works rose 3.3%.
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 was stubbornly opposed to concerns about high inflation, which could prevent the Federal Reserve from providing further relief to the economy 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. Minutes from the Fed’s final policy meeting, announced earlier this week, have been held for some time, taking into account concerns about how to boost inflation, along with Trump’s proposed tariffs and massive deportation of immigrants and other factors. It suggested that it could be held up for a while.
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 4.41% from 4.51% in the second half of Thursday. This is a noticeable movement.
Overseas stock markets had mixed indexes in Europe after much of Asia rose.
In Japan, the Nikkei 225 rose 0.3% after the government said it had surpassed the Bank of Japan’s target level last month. It may encourage people to continue to raise interest rates.
Hong Kong’s Hangsen jumped 4% in one of the world’s biggest moves. It was supported by a surge in e-commerce company Alibaba. He also explained the development of artificial intelligence.
AP business writers Eurikeyama and Matt Ott contributed.
Original issue: February 21, 2025, 4:10pm EST
