American stocks fell sharply on Friday after reports showed that concerns between consumers and companies about President Donald Trump’s policies may hit the US economy.
The S& P 500 1.7 % sank for the worst day in two months. The Dow Jones industrial rate decreased 748 points, or 1.7 %, and the NASDAC boat decreased by 2.2 %.
The losses accelerated during the next day of several weaker reports of the economy. One of them suggested that the American action activity is close to procrastination, with a slowdown in its lowest level in 17 months. The preliminary report issued by the S& P Global said that the activity is unexpectedly reduce the American services companies, and many have reported to survey optimism due to concerns about Washington.
“The companies have reported widespread fears about the impact of federal government policies, starting with the cuts on customs tariffs and geopolitical developments,” said Chris Williamson, S& P Global Markt Intelligence, said: It was reported that sales suffer from uncertainty caused by the changing political scene, and prices rise amid high prices related to tariffs from suppliers. “
A separate report said that American consumers are also preparing for high inflation, partly due to a possible customs tariff that may raise the prices of all types of imports. They expect the prices to be 4.3 % higher after 12 months from now, which is a large leap of its 3.3 % leaps of inflation last month, according to a survey of the University of Michigan. This is appropriate for the initial data in the survey earlier this month.
Among the American families, although the gap is clear under the surface. For the political and democratic independents, inflation expectations are rising, while declining slightly for the Republicans.
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Meanwhile, a third economic report said that sales of the previously occupied homes were weaker last month than economists. The relatively high mortgage rates, along with expensive prices for homes, are harmful to sales.
Certainly, the US Securities Market is still in the young year until now and not far from its high group ever earlier this week.
No one in Wall Street expects stagnation anytime. But Friday reports raise concerns about what was a noticeable flexible economy, and the losses in Wall Street were widely scattered.
The shares of the smallest companies, whose profits can be closely related to the power of the American economy from multinational competitors, have decreased more than the rest of the market. The Russell 2000 index of small stocks decreased by 2.9 %.
Among the major companies in the S&P 500 index, 3 out of 4 shares fell. Everything starts from the large technology shares that were displayed amid the madness of artificial intelligence to airlines to metal companies. Nafidia sank 4.1 %. United Airlines lost 6.4 %, and Neumont mining decreased by 5.7 %.
Akamai Technologies got a sharp decrease in the S&P 500, although the Cyber Security and Cloud Computing Company reported a stronger profit for the last quarter of what analysts expected. It lost five value and decreased by 21.7 %, as investors instead focused on their expectations for revenues and other financial measures next year, which were less than the expectations of analysts.
On the winning side of the Wall Street, Celsius Holdings, which sells energy drinks “Best for you”. She jumped 27.8 % after she said that she agreed to buy Alani Nu, a drink that focuses on the female customer. Analysts have given the purchase price, net of the tax effects of $ 1.65 billion, and said that the deal should quickly add to CELSIUS profits, which also reported the latest quarterly results.
Among the other winners is the shares of companies that can provide more stable profits, regardless of the power of the American economy. The benefit of water increased by American water 3.1 %, for example.
Finally, the S&P 500 104.39 points decreased to 6,013.13. Dow Jones 748.63 decreased to 43,428.02, and Nasdaq Composite Composite 438.36 points to 19,524.01.
Before the sharp decrease on Friday, the S&P 500 was heading for a week of zero movement. The assistance in raising shares was a fixed offer for the best profit reports. This helped to compensate for fears of high -end inflation, which may prevent the federal reserve from providing more relief to the economy and financial markets through low interest rates.
The Federal Reserve maintains the constantly fixed interest rate after it was sharply reduced during the end of last year. At their last meeting in January, federal reserve officials suggested that they may be waiting for a while while giving concerns about how Trump’s proposed tariff and mass deportation of migrants, along with other factors, could go towards inflation.
While fewer rates can enhance the economy, they can encourage spending that puts upward pressure on inflation.
Treasury revenues in the bond market fell after the weakest economic reports on Friday. The return on the cabinet for 10 years to 4.42 % from 4.51 % late on Thursday.
In stock markets abroad, indexes were mixed in Europe after they rise across most Asia.
Hang Singh jumped 4 % in one of the largest movements of the world, which was reinforced by Alibaba Electronic Trading, which was reported to be stronger for the end of last year than expected. She also talked about her artificial developments.
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