Wall Street Tumbles as Economic Uncertainty and Tariffs Weigh on Markets

U.S. stocks plunged on Friday, extending their selloff as weak economic data and tariff concerns fueled investor anxiety. The S&P 500 suffered its worst single-day drop since December, while the Dow posted its steepest weekly decline since October.

Market sentiment soured after reports showed U.S. business activity slowing and consumer confidence weakening. Walmart’s disappointing earnings forecast intensified fears of dampening consumer demand. S&P Global’s Chris Williamson noted that business optimism has "evaporated" amid growing economic uncertainty.

Tech stocks took a hit, with the "Magnificent Seven" all closing lower. Nvidia fell 4.1% ahead of its earnings report, while Tesla and Rivian dropped 4.7% after announcing recalls. The CBOE Volatility Index surged to its highest level since early February, reflecting heightened market unease.

Investor nerves were rattled by President Trump’s announcement of new tariffs on lumber, cars, semiconductors, and pharmaceuticals. The economically sensitive sectors—transportation, chips, small caps, and consumer discretionary—plunged over 2%. The Dow Jones fell 748.63 points (1.69%) to 43,428.02, the S&P 500 lost 104.39 points (1.71%) to 6,013.13, and the Nasdaq declined 438.36 points (2.20%) to 19,524.01.

UnitedHealth shares sank 7.2% following a Justice Department probe into its Medicare billing, while Block plummeted 17.7% after missing profit estimates. Akamai Technologies slid 21.7% after issuing weak revenue guidance.

Despite the turbulence, 76% of S&P 500 firms have beaten earnings expectations, with aggregate Q4 growth revised upward to 15.7% from 7.8%. However, analysts anticipate ongoing volatility as economic uncertainty persists.