Stock closed lower on Friday, with the Dow losing ground in afternoon trading after the White House said President Trump will implement on Saturday tariffs of 25% on Canadian and Mexican imports and 10% on Chinese goods with immediate effect.
The Dow Jones Industrial Average dropped 337.47 points, or 0.8%, to 44,544.66
The S&P 500 lost 0.5%, and the Nasdaq slipped 0.3%. The blue-chip Dow was the only index to finish the week in positive territory.
Investors have been bracing for further tariff news after Trump has repeatedly warned about using the measure.
Reuters earlier quoted sources familiar with the tariff deliberations as saying that Trump would announce tariffs on Canadian and Mexican imports on Saturday but delay collection of the duties until March 1.
A White House spokesperson called the report “false.” She said the duties would be published on Saturday and would take effect immediately. Stocks turned lower on the day following the White House comments.
“I would have thought the market would be down more. It’s not just the announcement itself, which I think probably impacts a select number of industries. It’s whatever retaliation moves are taken,” said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, NJ.
Earlier in the session, economic data reinforced expectations that the Federal Reserve would keep interest rates unchanged for longer.
US prices increased as expected in December, while consumer spending surged.
“Clearly, it makes total sense that the Fed didn’t do anything this week, and it makes sense (Fed Chair) Jay Powell would say they’re not in a hurry to lower rates,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute in St. Louis.
The Fed left rates unchanged in its policy announcement on Wednesday, and Powell said the U.S. central bank wants to see further progress in inflation before cutting rates.
Apple fell 0.7%. It was up earlier in the session after upbeat executive comments in its earnings on Thursday, in a sign the company expects to recover from a dip in iPhone sales as it rolls out AI features.
Chevron shares fell more than 4% after the company reported fourth-quarter earnings below estimates.
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