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American actions fell most in two months after a period of gloomy economic data showed the feeling between consumers and businesses has cooled for a month in Donald Trump’s presidency.
S&P 500 RA 1.7 percent on Friday, the worst slide for the Wall Street’s Blue-Chip index since December 18, when the federal reserve lowered interest rates, but signaled a slower pace of monetary policy that was facilitated in 2025.
The technology -centered Nasdaq composition was reduced 2.2 percent in its steepest autumn since January 27, when Big Tech shares were struck as concerns for advances from the onset of Chinese artificial intelligence Deepseek shocked the sector.
The sharp decline came as a series of reports signaled that the world’s largest economy is facing increasing challenges from the raised costs of borrowing and inflation. Trump’s tariffs have also begun to feel between consumers and businesses.
Wobble of Wall Street interrupts a rally in US capital, which sent S&P 500 to a high record Wednesday.
Trump’s cutting policies and the search for increased growth had given shares an incentive after his elections in November. But some of that enthusiasm has recently been relieved as concerns have been shaken over the effects of tariffs, which are expected to increase inflation.
The data issued on Friday showed that home sales previously owned 4.9 percent in January from last month after buyers fought with high mortgage rates continuously and prices raised in all major countries in the country.
Meanwhile, a closely viewed measure of the consumer’s trust issued by the University of Michigan fell sharply in February from January. The survey also showed that long -term inflation expectations reached the highest level since 1995.
“The short answer is that the consumer has problems,” said the head of interactive economist Brokers Steve Sosnick, showing weaker data recently, including soft retail figures last week.
Separately, a closely viewed study by S&P Global showed that activity in the broader US service sector was first contracted in more than two years this month. Manufacturers noted that entry costs had increased significantly as a result of rising prices caused by tariffs and wage pressures.
“The genuine humor first among US businesses at the beginning of the year has evaporated, replaced with a dark view of increased insecurity, stagnation of business activity and price increases,” said Chris Williamson, leading business economist in S&P Global Market Intelligence.
Reflecting Friday’s sales width, about three in four shares S&P 500 were reduced and Russell 2000 small centered on the lid, consisting of more concentrated groups in the interior, closed 2.9 percent lower.
Consumer Products Only – A Classic Protective Game – won Friday by the 11 S&P sectors. Consumer discretion, which performs well when growth is good, was the worst performer, sliding 2.8 percent.
Friday also scored the expiry date for a large number of stock options. Such sessions often tend to be characterized by unstable stocks of stock prices.
The sale was accompanied by a rally in the Treasury notes, as investors demanded the relative security of government debt, and comes at the end of a week of constant geopolitical uncertainty.
The yield in the 10-year standard of the US Treasury decreased 0.08 percentage points to a two-week low of 4.43 percent.
Trump earlier this week said he would introduce 25 percent car import fees – as soon as April 2 – and also flags for tax imposition in semiconductors and pharmaceuticals imported. SH.BA has previously said that it will impose large tariffs against Mexico and Canada, its largest trading partners.
The administration has also cut thousands of workers from the federal workforce, and Trump has tested political nerves by opening peace with Russia to end the war in Ukraine and calling President Volodymyr Zelensky a “dictator”.
Government bonds also increased in Europe, promoting lower yields.
The yield in the 10-year-old Bund was declining 0.08 percentage points to 2.45 percent before German federal elections on Sunday, polls show that they will be won by the Democratic Democratic Union of Center.
Unlike their American peers, the wider gauge of Europe’s biggest shares closed higher Friday, though Dax of Germany was closed slightly lower.
Additional reporting by Jennifer Hughes to New York
