The securities market in the United States collapsed on Friday, when it published the worst loss for one day since December 2024, when traders threw the assets of risks to fears of the weak economy and the active inflation – all of the White House increased the war of tariffs.
By the time the market was closed, the Dow Jones industrial rate decreased 748.63 points (1.69 %) to 43,428.02. S&P lost 500 1.71 %, ended at 6,013.13, while Nasdaq fell by 2.2 % to 19,524.01.
Traders empty shares as fixed -weekend fears – another 48 hours where Trump can drop more customs tariff bombs after already threatened (repeated and repeatedly) on a 25 % slap on cars, semiconductors, and pharmaceutical preparations.
Meanwhile, a consumer confidence of the University of Michigan has decreased sharply in February of January. The survey also showed that long -term inflation forecast had reached the highest level since 1995.
The housing market collapses. Current house sales decreased by 4.9 % in January, a more severe decrease than expected. Buyers retreat, and they press the high mortgage rates in the sky and the high prices of homes.
This was not the only red flag. The American services sector has shrunk as soon as possible in more than two years, according to the latest S& P Global data. Commercial activity slows down, and definitions make it worse.
“The optimistic mood that was seen at the beginning of the year has evaporated,” said Chris Williamson, S& P Global Business Economist, said. “Understanding in the rise, and commercial activity is a stop, and inflation continues to represent a serious issue.”
Wall Street’s largest names take a blow
Big Tech was crushed while investors could rescue high -growth names such as NVIDIA, Meta, Alphabet, Microsoft, Palantir and other investors. According to For Data Rom Google Finance, the morale that did not flounder of the cash risks that flowed into defensive stocks was sent, as Procter & Gamble increased by 1.8 %, General Mills and Kraft Heinz more than 3 %.
Wall Mart also felt pain. The stock decreased by 2.5 %, which is its second consecutive day from the decline, after the company warned that the consumer expectations are weakened.
For the week, S&P slipped by 1.7 %, while Dow and Nasdaq lost 2.5 %.
The sale was accompanied by a march in the treasury notes, where investors sought the relative safety of government debt, and comes at a week of continuous geopolitical uncertainty.
The federal reserve is now in focus. Market stakes on cuts in interest rates have changed rapidly, as traders now see a 55 % chance that the Federal Reserve reduces prices two to three times by the end of 2025, which reduces 3.50 % -3.75 % from 4.25 % -4.50 % current. On Thursday, those possibilities were only 44.4 %.
By October, futures contracts indicate a 50-50 chance to reduce a deeper between half and three quarters of a percentage-a tremendous change in expectations from only one day, when the possibility was only 38 %.
The expiration of the options adds to the market chaos
On Friday was the day of the main options, which means huge sizes and wild price fluctuations. It ended nearly 80 % of the S&P 500 shares, while the small stocks achieved are greater, as Russssell 2000 drowned with more than 2 %.
“It is clear that the markets are waking up to the consumer’s impact of definitions,” said Jimmy Cox, the administrative partner of the Harris Financial Group. “Even if these customs duties never enter, consumers already change their behavior.”
Wall Street began pricing the complete effects of the Trump’s trade war. Investors initially cleaned the White House tariff threats, assuming that they were just negotiating tactics. But now, it looks real. The administration has already promised the definitions of Canada and Mexico, one of the largest commercial partners in America. Manufacturers also feel heat – entry costs and wage pressure make work more expensive.
“This purchase mentality, is never higher at the retail level … it’s just a wide range of market in the market” He said CNBC. It is a kind of Pavlovian response. They bought DIP for two or three years in addition, and it is paid, so they feel very confident about their ability to choose shares and trade this ascending market. ”
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