New York (AP) – US shares have fallen as worries on Friday re -illuminated on Wall Street O tariffs and inflation.
The S&P 500 fell 0.9% and deleted what was a modest win for a week. It’s one of the worse downs for the index so far in a young year but stays nearby A record set two weeks ago.
Industrial average Dow Jones sank 444 points, or 1%, and a sharp fall for Amazon after the last profit report He pulled the Nasdaq composite to a leading loss of 1.4%.
Treasury yields also climbed the bond market after discouraging a report on Friday morning, suggested that the feelings were unexpectedly acidic among US consumers. A preliminary report from the University of Michigan has said that US consumers expect to reach 4.3%in the upcoming year, which is the highest such forecast of 2023.
It is a full percentage point above what consumers said they expect a month earlier, which is the second straight increase in the unusual amount. Economists have pointed to the possibility of American tariffs to a wide range of imported products that President Donald Trump He suggested and finally encouraged prices for US consumers.
Trump said at a press conference at the White House on Friday that on Monday or Tuesday he was likely to have an announcement of “reciprocal tariffs, where the country pays so much or charges us so much, and we do the same.”
Consumer data followed a Mixed update in the US labor marketwhich is often the most anticipated economic report every month. Showed that employment last month was less than half December rateBut this also included stimulating nuggets for workers: the unemployment rate was mitigated, and workers saw a higher gain in average wages than economists expected.
All data taken together could keep federal reserves on hold when it comes to interest rates. Fed began to reduce his main interest rate in September In order to relax the pressure on the economy and the labor market, but he warned at the end of the year that it could be reduced less than 2025 years than expected to take care of worries earlier inflation remaining stubbornly tall.
Interest rates are one of the things that care the most on Wall Street because lower rates can lead to higher shares and other investment prices. The disadvantage is that inflation can also give more fuel.
For Scotta Wren, a higher global market strategist at the Wells Fargo Investment Institute, a job report did nothing that would change its forecast for the FED to reduce the federal funding rate only once in 2025. It is a touch more conservative than many traders on Wall Street that collectively sees 45% chance that Fed will reduce at least twice, according to Data from the CME group. Of course, some merchants also bet on the possibility of zero cutting.
