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Why is the stock market down today? S&P 500 and Dow slide in worst day of 2025.
Stocks fell sharply after reports signaled concerns that President Trump's policies could be impacting the U.S. economy.
www.cbsnews.com
Why is the stock market down today? S&P 500 and Dow slide in worst day of 2025.
Stocks tumbled on Friday after weaker-than-expected economic reports suggested that President Trump's policies could be impacting U.S. business activity, while consumer sentiment dropped to a 15-month low.
Both the S&P 500 and the Dow Jones Industrial Average slumped 1.7% on Friday, marking their worst one-day declines since December 18, according to financial data firm FactSet. The tech-heavy Nasdaq composite index dropped 2.2%.
A preliminary report from S&P Global found U.S. business activity is nearing stall-speed, with growth decelerating to a 17-month low. Activity for U.S. services businesses unexpectedly shrank, and many businesses in the survey reported slumping optimism because of worries about policies from the Trump administration, including the potential for new tariffs and domestic spending cuts.
"Companies report widespread concerns about the impact of federal government policies, ranging from spending cuts to tariffs and geopolitical developments," said Chris Williamson, chief business economist at S&P Global Market Intelligence. "Sales are reportedly being hit by the uncertainty caused by the changing political landscape, and prices are rising amid tariff-related price hikes from suppliers."
Inflation worries also weighed on the stock market, with a University of Michigan survey finding that consumers are preparing for higher inflation due to potential tariffs. Because tariffs are taxes paid by importers, such as retailers such as Walmart, the costs are often passed onto consumers, raising prices.