US markets slide as Trump’s tariffs rattle investors; S&P 500, Dow, Nasdaq fall

Wall Street’s early gains faded on Friday after the White House confirmed that President Donald Trump’s new tariffs on major US trading partners would take effect on Saturday.

The S&P 500 slipped 0.6%, the Dow Jones Industrial Average tumbled 345 points (0.8%), and the Nasdaq Composite dropped 0.4%, as investors reassessed risks tied to trade tensions.

Tariffs trigger sell-off in key stocks

The market turned lower after White House press secretary Karoline Leavitt announced that Trump’s 25% tariffs on Canada and Mexico, along with a 10% duty on Chinese imports, would be made public this weekend.

Stocks with significant exposure to these regions, such as Constellation Brands (Corona’s parent company) and Chipotle, fell 2% and 1%, respectively.

Energy stocks also slumped, with Chevron and Exxon Mobil declining 4% and 3%, respectively, after posting disappointing Q4 earnings.

Meanwhile, Apple initially rallied on stronger-than-expected services revenue, despite weak iPhone sales, but later gave up gains to trade 1% lower.

Markets wrap up a volatile week and month

Despite Friday’s losses, major indexes managed to recover some ground from Monday’s tech-led selloff.

The Nasdaq Composite, which plunged 3.07% earlier in the week amid concerns over China’s DeepSeek AI startup, trimmed its weekly losses to 1.7%.

The S&P 500 is on pace for a 1% weekly drop, while the Dow is set to finish 0.2% higher for the week.

Nvidia, a key driver of recent tech volatility, rebounded from a 17% Monday plunge to pare weekly losses to 14%.

For January, all three major indexes posted gains despite the turbulence.

The S&P 500 rose 2.6%, the Nasdaq advanced 1.5%, and the Dow outperformed with a 4.7% monthly jump.

Inflation data keeps Fed watchers on edge

Friday’s release of December’s Personal Consumption Expenditures (PCE) price index—the Federal Reserve’s preferred inflation gauge—showed a 0.3% monthly rise and a 2.6% annual increase, in line with expectations but higher than November’s 2.4% rate.

The core PCE, which excludes food and energy, climbed 0.2% monthly and 2.8% annually, raising concerns about persistent inflation pressures.

With the market grappling with trade policy uncertainties, earnings surprises, and inflation signals, investors remain cautious heading into February