Stock market today: Dow, S&P 500, Nasdaq slide as inflation, tariff fears push stocks to another losing week
Published On Feb 7, 2025, 5:53 PM
US stocks fell significantly on Friday, with the S&P 500 decreasing by almost 1% and the Nasdaq composite dropping around 1.4%. This decline was attributed to rising inflation expectations, which have now reached 4.3%, and concerns about potential tariffs from the Trump administration. Consumer sentiment fell to a seven-month low, and despite the US economy adding 143,000 jobs in January, the number missed economists' expectations. Amazon shares dropped 4% following a disappointing revenue outlook, affecting the tech sector negatively.
Stock Forecasts
AMZN
Negative
The US stock market faces downward pressure due to increasing inflation fears and possible tariffs, affecting consumer sentiment and overall economic outlook. Amazon's disappointing guidance could indicate a broader trend among tech stocks struggling with inflationary pressures.
XLY
Negative
Rising inflation expectations might push consumers to tighten their spending, leading to further declines in retail and consumer discretionary stocks, especially in the face of new tariff threats from the government.
SPY
Negative
The consumer sentiment drop highlights weakness in consumer spending, which could further affect companies within the broader market, especially those reliant on robust consumer confidence and purchasing power.
Related News
Trump says he will announce reciprocal tariffs on many countries next week
Feb 7, 2025, 11:02 AM
WASHINGTON (Reuters) -President Donald Trump said on Friday he plans to announce reciprocal tariffs on many countries by Monday or Tuesday of next week, a major escalation of his offensive to tear up and reshape global trade relationships in the U.S.' favor. Trump did not identify which countries would be hit but suggested it would be a broad effort that could also help solve U.S. budget problems. "I'll be announcing that, next week, reciprocal trade, so that we're treated evenly with other countries," Trump said.
Inflation fears rise to highest since Nov. 2023 as consumer sentiment hits 7-month low
Feb 7, 2025, 11:53 AM
The latest University of Michigan consumer sentiment survey showed more Americans are anxious about the inflation outlook.
January jobs report: Unemployment rate falls to 4%, wages rise more than forecast as US labor market remains resilient to start 2025
Feb 7, 2025, 9:44 AM
The January jobs report comes as investors are closely watching for any clues about whether or not the Federal Reserve will cut interest rates in 2025.