Wall Street surrenders to gains after the White House confirms Trump’s tariff move

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Stocks on Wall Street surrendered to the early gains and closed widespread on Friday after the White House said that President Donald Trump would impose promised tariffs on key American trade partners.

The S&P 500 fell 0.5%and the Nasdaq composite dropped 0.3%. The indexes, which published solid gains in the morning trading, recorded their first weekly loss in three weeks.

The industrial average Dow Jones dropped 0.8%.

Trump will establish 25% of tariffs on imports from Canada and Mexico and 10% of Tariff on the goods from China in force on Saturday. The White House did not provide any word about whether there would be an exemption from measures that could result in a rapid increase in prices for US consumers.

The sale was wide, with about 75% of the shares in S&P 500 lower. Technology and energy companies made up a big stake in the fall.

“If Trump says this could happen by tomorrow, which does not leave much space to move,” said Sam Stovall, the main investment strategist in CFRA. “There is only so much uncertainty associated with the elevation of the tariff to our three main trading partners.”

Early winnings on Wall Street helped shave their losses from the beginning of the week because of the care that artificial-intelligence flourishing may not require as much investment as they think.

Apple Reverse course from leading markets to a loss of 0.7%. The company reported to a stronger profit for the last quarter than analysts expected. The most valuable company on Wall Street, and thus the most influential on the S&P 500 and other indexes, said the sale of the iPhone was wrapped. But revenues for their services, such as Applecare and the App Store, increased to the record.

KLA, electronics supplier increased after reporting profit and revenue that exceeded the expectations of analysts, but then closed 0.6%. The company, which has earned its results for expanding artificial intelligence and computer investments of high performance, fell 6.3%on Monday. Then the technological stocks around the world collapsed, after Chinese elevation, DeepseekHe said he had developed a large linguistic model that could compete with the best in the world without having to use top chips.

Disorders have asked questions about whether all investments for AI chips are expecting, data centers and current It really is necessary.

The Nvidia shares, which was considered by the Poster’s child AI Frenzy, fell 3.7%. They lowered 15.8% in a week. His Executive director, Jensen Huang, is expected to meet with Trump Friday in Washington.

Concerns that the tariffs could end up driving inflation greater to encourage long-term bond yields, including a 10-year treasury, which increased to 4.54% on Thursday with 4.52%.

“It is not a certain refuge that usually is because these tariffs could result in more inflation and the need for the Fed to remain on a break longer or turn the course and increase the rates,” Stovall said.

The short -term yields of US government bonds have generally fallen.

The yields are mostly climbed since September because the American economy remained much firmer than economists expected. More recently, the care of tariffs and other possible policies of Trump administration that could add to the increase in pressure on inflation and the debt of the US government have also sent yields higher.

Federal reserves left their reference interest rate unchanged because she closed her latest meeting on Wednesday. The central bank signals a more cautious approach while waiting to see how policies under Trump will affect inflation and wider economy. Larger tariffs and a reduction in taxes could push inflation more, while the deregulation could reduce it.

“The markets are on the verge of watching President Trump’s plans to raise tariffs and pushes immigration policies, as they both press the Fed to raise interest rates,” said Bill Adams, the chief economist for Comeric Bank.

On Wall Street, Walgreens Boots Alliance fell 10.3% after suspending his dividend and breaking a series of quarterly payments to its shareholders who extend for more than 90 years.

Exxon Mobil marked 2.5% although the energy giant Posted a stronger profit in the fourth quarter than Wall Street forecast. Exxon attributed increased production in the American Permian painting and Guyana for strong results, but his income was lower than expected.

All in all, S&P 500 fell 30.64 points at 6,040.53. Dow fell 337.47 points at 44,544.66. Nasdaq lost 54.31 points to close to 19,627.44.

At the shares abroad, the indexes ended mixed up in Europe after they also ended up mixed in Asia.

The Nikkei 225 Japanese Index added 0.1% after the report showed that the basic rate of inflation in the country is upward opposite the goal of the central bank, running the path for further increase in interest rates.

The mowing in South Korea fell 0.8% after trading continued there after the holidays. The markets remained closed in Hong Kong and Shanghai for the Lunar New Year.

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AP Business writer Alex Veiga contributed.

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