Dow plummets 724 points amid economic fears and inflation concerns, marking 2025’s worst decline to date.
In Short
Stocks fell sharply on Friday, with the Dow losing 724 points as traders reacted to worrying U.S. economic data and proposed tariffs. This decline has raised fears about inflation and market stability, leading to shifts towards safer investments.
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Stocks experienced significant declines on Friday, with the Dow Jones Industrial Average dropping 724 points, or 1.6%. This marks the largest decline of 2025 so far.
Traders were unsettled by new U.S. economic data indicating a slowing economy and persistent inflation, prompting a shift towards safer assets. Concerns mounted ahead of a potentially turbulent weekend due to proposed tariffs and policy changes from the Trump administration.
Friday’s loss brought the Dow’s two-day losses to over 1,200 points. Meanwhile, the S&P 500 and Nasdaq Composite also fell, with declines of 1.6% and over 2%, respectively.
The University of Michigan’s consumer sentiment index reported a 10% decrease to 64.7, raising alarms about inflation expectations. The five-year inflation outlook was revised upward to 3.5%, the highest since 1995. Additionally, existing home sales fell to 4.08 million units, and the services purchasing managers index declined, indicating contraction.
Walmart shares also saw a drop due to a weaker-than-expected forecast. Prominent investor Steve Cohen expressed caution, indicating potential for a significant market correction due to proposed tariffs and government cost-cutting.
Investor preferences shifted towards defensive stocks, resulting in losses for high-growth companies like Nvidia and Palantir. Conversely, Procter & Gamble, General Mills, and Kraft Heinz reported gains. For the week, major indices have all recorded losses, reflecting growing concerns about economic stability.
