Stocks went down on Friday due to concerns about tariffs and inflation. President Trump’s comments on reciprocal tariffs made traders nervous. The Dow Jones fell by almost 1%, the S&P 500 dropped by 0.95%, and the Nasdaq Composite slid by 1.36%.
Before Trump’s announcement, data on consumer sentiment and jobs had hinted at rising inflation. The 10-year Treasury yield surged above 4.5%. Consumer sentiment fell to 67.8 in February, lower than expected, and people predicted a 4.3% inflation rate for the year.
In January, the unemployment rate decreased to 4% and average hourly earnings were higher than anticipated. Amazon’s stock fell by 4% after disappointing revenue growth guidance for the first quarter.
Overall, it has been a turbulent week on the stock market due to news on tariffs and economic data. Traders are expecting more volatility in the short term.
It’s important to stay informed about these developments to understand how they can affect the economy and investments.
Vocabulary List:
- Tariffs /ˈtær.ɪf/ (noun): Taxes imposed by a government on imported goods.
- Inflation /ɪnˈfleɪ.ʃən/ (noun): The rate at which the general level of prices for goods and services is rising.
- Volatility /ˌvɒl.əˈtɪl.ɪ.ti/ (noun): The quality of being subject to rapid or unpredictable change especially in financial markets.
- Consumer /kənˈsjuː.mər/ (noun): A person who purchases goods and services for personal use.
- Sentiment /ˈsɛn.tɪ.mənt/ (noun): A view or opinion that is held or expressed.
- Decreased /dɪˈkriːst/ (verb): To become smaller or less in amount degree or size.
