Stocks are falling again, heading for a fifth straight week of losses — here’s why
Stocks are slumping in the morning due to ongoing concerns about U.S. tariffs and signs that the U.S. economy is staggering.
As of 11:17 ET, the Dow Jones Industrial Complex fell 236 points, or 0.6%, to 41,717 points, while the S&P 500 and the Nasdaq fell 0.6% and 0.5%, respectively.
Investors are retreating Measuring potential risks Trade and immigration policies from the Trump administration, as well as forecasts for lower U.S. economic growth.
“It’s a very uncertain time,” said Christopher Low of FHN Financial. “There is a trend of worry that it will translate into sales.”
The Fed predicts the country’s GDP this year Will fall to 1.7%down from 2.8% in 2024. Policymakers also expect inflation to drop in 2025 and then decrease the following year. By contrast, the chances of a recession are still low.
“I expect GDP growth this year to decline from last year’s rate due to lower immigration rates and slowing labor growth.” speech Friday.
One sign that the economy is losing speed – FedEx stock warned Friday the day before its warning that its revenue was flattening and lowering its profit guidance. Delivery giants, as well as competitor UPS, are seen as a measure of a wider range of economic activity. The revenues of other companies are also disappointing.
“High borrowing costs and increased economic policy uncertainty will lead to a stagnation in business investment this year. Investigative measures of investment intent threaten tariffs and tax cuts have dropped sharply,” Pantheon macroeconomics analysts said in a note on Friday.
Leading market indexes have plunged in recent weeks after reaching record highs in February, with Wall Street analysts expecting trades to remain stable. A key potential catalyst will take place on April 2, when U.S. tariffs on Canada and Mexico and so-called reciprocity tariffs from other countries will take effect.
Avoid action
This week’s survey of Bank of America’s currency managers showed that institutional investors are Exit US stocks Promise more stable geographical areas.
Even the often bullish market analysts have attracted attention given the increasing uncertainty caused by President Trump’s economic policies.
“We continue to bet on the resilience of consumer, economy and corporate revenues, but we think recession concerns will increase the valuation multiple,” Ed Yardeni, president of investment adviser Yardeni Research, told investors in a note. “We acknowledge that the risks of recessions and bear markets may continue to increase. It all depends on the often unpredictable president, who often (proudly) refer to themselves as “tariffs”, reflecting his strong support for protectionist policies.”
Contributed to this report.
