US Stocks Fall on Inflation Fears and Trump's Trade Threats

US stocks declined on Friday as investors grappled with the potential impact of additional tariffs by the Trump administration and concerns over rising consumer inflation. The S&P 500 (^GSPC) shed nearly 1%, while the tech-heavy Nasdaq Composite (^IXIC) lost around 1.4%, marking their second consecutive week of losses. The Dow Jones Industrial Average (^DJI) plunged over 400 points, or almost 1%, recording its worst daily performance in approximately four weeks.

President Trump's Tariff Plans

President Donald Trump announced plans to soon reveal reciprocal tariffs on American imports. The announcement, made during a meeting with Japanese Prime Minister Shigeru Ishiba, included the possibility of tariffs on Japan.

Consumer Sentiment Sinks, Inflation Expectations Rise

Consumer sentiment reached a seven-month low in February, according to a University of Michigan survey, undershooting forecasts and triggering a surge in inflation expectations. This rise in expectations stemmed from apprehensions about Trump's tariff threats.

Jobs Report Shows Labor Market Resilience

The January jobs report showed that the US economy added 143,000 jobs, below economist expectations but still indicating resilience in the labor market. The unemployment rate declined to 4.0% from 4.1% in December, while hourly wages rose by 0.5%.

Amazon, Tesla, and Meta Stock Performance

Amazon (AMZN) stock fell 4% after the e-commerce giant underwhelmed investors with its revenue outlook. Tesla's stock (TSLA) was on track for a weekly loss of 9% amid a slump in China deliveries. Meta (META) announced upcoming layoffs affecting 5% of its workforce.

Trade War Concerns Impact Oil Prices

Oil prices posted a third consecutive week of decline due to trade war worries between the United States and China. US tariffs on Chinese imports and China's retaliatory measures weighed on demand expectations.

Big Tech Companies Caught in Trade War Crossfire

President Trump's trade war with China has targeted Silicon Valley giants. China announced antitrust investigations into Google and Apple, highlighting the vulnerability of tech companies to geopolitical tensions.

Mortgage Rates Stay Elevated, Consumer Sentiment Shifts

Consumers are now less optimistic about mortgage rate declines in the year ahead, according to a Fannie Mae poll. Meanwhile, the average 30-year mortgage rate remained above 7% for all of 2025.

Jobs Report Signals Labor Market Strength

Stocks rose slightly on Friday as investors digested a jobs report showing resilience in the labor market. The unemployment rate fell to 4%, while hourly wages grew.

European Stocks Post Gains, UK Central Bank Cuts Rates

European stocks were mixed but were on track for weekly gains, driven by positive earnings reports. The Bank of England's interest rate cut and dovish commentary boosted London's FTSE 100 index.

Chinese Tech Stocks Soar on AI Hype

Chinese tech stocks in Hong Kong rallied to the brink of a bull market, fueled by excitement over DeepSeek's artificial intelligence model.

Amazon Anticipates Cloud Computing Challenges

Amazon warned investors about potential capacity limitations in its cloud computing business despite significant planned investments.