US Stocks Slide on Inflation Concerns and Jobs Report
US stocks ended Friday's trading session lower as investors grappled with rising consumer inflation expectations and a mixed monthly jobs report.
The S&P 500 (^GSPC) closed 0.5% lower, while the tech-heavy Nasdaq Composite (^IXIC) shed 1%. The Dow Jones Industrial Average (^DJI) also declined 0.5%.
Inflation Expectations Spike
Sentiment took a hit after a Reuters report revealed President Trump's plans to announce reciprocal tariffs on American imports. Additionally, US consumer sentiment plunged to a seven-month low in February, undershooting forecasts.
Inflation expectations jumped amid worries about Trump's tariff threats. The University of Michigan survey showed Americans anticipate an inflation rate of 4.3% in the next year, a full percentage point higher than last month.
Mixed Jobs Report
The Labor Department reported that the US economy added 143,000 jobs in January, below economist expectations. However, hourly wages rose higher than anticipated, and the unemployment rate decreased to 4.0%.
The jobs report underscores the resilience of the labor market but also adds to concerns about inflationary pressures.
Amazon's Earnings Outlook Disappoints
Meanwhile, Amazon (AMZN) shares plummeted 4% after it joined Google (GOOG) and other AI-focused tech giants in issuing disappointing revenue outlooks.
Market Outlook
Despite the declines, the major gauges remain poised to end the earnings-packed week with modest gains. However, unpredictable tariff news from Trump keeps traders on edge.