U.S. stocks plummeted on Friday due to concerns over tariffs and inflation, contributing to increased market volatility throughout the week. The Dow Jones Industrial Average dropped by 444.23 points, or 0.99%, while the S&P 500 and Nasdaq Composite fell by 0.95% and 1.36%, respectively. All sectors of the S&P 500 experienced declines as investors grappled with economic uncertainties.
The market instability was sparked by U.S. President Donald Trump’s announcement of plans for reciprocal tariffs on trading partners. This strategy aims to equalize tariff rates between the U.S. and other countries, with more details expected in an upcoming news conference.
Adding to the market’s unease was the February consumer sentiment index from the University of Michigan, which fell to 67.8, below economists’ expectations of 71.3. The survey also highlighted a significant rise in inflation expectations, with predictions climbing from 3.3% to 4.3%, the highest since November 2023.
On the employment front, January saw the addition of 143,000 jobs—lower than both December’s revised 307,000 and the forecasted 169,000. Despite this, the unemployment rate decreased to 4%, slightly better than the anticipated 4.1%. Chicago Federal Reserve President Austan Goolsbee described the jobs report as “solid,” indicating that the labor market is nearing full employment. He noted that the central bank might pause further actions for now, but projected a potential decrease in interest rates over the next 12 to 18 months.
In corporate news, Uber shares surged over 8% following the revelation that billionaire hedge fund manager Bill Ackman’s firm, Pershing Square Capital Management, holds more than 30 million shares in the company. This stake is valued at over $2 billion, boosting investor confidence in the ride-sharing giant.
Original Source: https://tripurachronicle.in/world-news/u-s-stocks-slump-amid-trumps-reciprocal-tariff-plans/
Category : World News
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Publish Date: 2025-02-08 21:15:00
