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Wall Street closed sharply lower on Friday, pulled down by tech and discretionary stocks. Indexes registered losses after President Trump announced that reciprocal tariffs would be imposed on many countries. Numbers from the labor market also did not help. All three most widely followed indexes closed the session firmly in the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 1%, or 444.23 points, to close at 44,303.40. Twenty-five components of the 30-stock index ended in negative territory, four ended in positive, while one remained unchanged.
The tech-heavy Nasdaq Composite declined 268.59 points, or 1.4%, to close at 19,523.40.
The S&P 500 lost 57.58 points, or 1%, to close at 6,025.99. All of the 11 broad sectors of the benchmark index closed in the red. The Consumer Discretionary Select Sector SPDR (XLY), the Materials Select Sector SPDR (XLB) and the Technology Select Sector SPDR (XLK) retracted 2%, 1.2% and 0.9%, respectively.
The fear-gauge CBOE Volatility Index (VIX) increased 6.7% to 16.54. A total of 15.1 billion shares were traded on Friday, higher than the last 20-session average of 14.9 billion. Decliners outnumbered advancers by a 2.79-to-1 ratio on the NYSE, while on the Nasdaq Composite, declining issues had a 2.53-to-1 advantage.
Trump’s Policies Continue to Spook the Market
On Friday, President Trump said that his administration will announce reciprocal tariffs on many countries by Monday or Tuesday of this week, in what would be a major shakeup to the United States’ trade relations with its business partners. However, Trump did not mention the countries that would be impacted.
"I'll be announcing that, next week, reciprocal trade, so that we're treated evenly with other countries. We don't want any more, any less," Trump said during a meeting with Japan’s Prime Minister Shigeru Ishiba. For quite some time now, the returning President has been complaining about the European Union's tariffs on auto imports being much higher than what the U.S. charges. There is wide speculation that this week’s tariffs might address the issue.
While the move might go a long way in fulfilling Trump's campaign promise to be on the same keel with trading partners with regard to tariff imposition, the probable inflationary fallout has continued to spook the stock market in the United States. There is an opinion that by raising tariffs to pay President Trump’s 2017 tax cuts, the national debt could go up by trillions of dollars.
For the week, all three benchmark indexes accumulated losses, with the Dow breaking a three-week winning streak, ending 0.5% lower. The S&P slid 0.2% while the Nasdaq was lost 0.5%. The Trump administration’s tariff plans dominated the proceedings at the start and end of the week.
Economic Data
Per the Fed, in December 2024, consumer credit increased $40.8 billion, while the number was revised down to a decrease of $5.4 billion for November from the earlier reported $7.5 billion fall.
Per the University of Michigan, preliminary consumer sentiment for February decreased to 67.8 from 71.1 reported in January.
According to the U.S. Census Bureau, wholesale inventories for January decreased 0.5%. The number for December was revised down to a 0.1% decrease from the previously reported 0.2% decline.
The Labor Department reported that Nonfarm Payrolls had increased by 143,000 for January compared to the revised 307,000 in December. The December number was ramped up from the previously reported 256,000. Average Workweek came down to 34.1 from December’s 34.2. Average Hourly Earnings increased 0.5% compared to the December increase of 0.3%. Unemployment Rate in January decreased to 4% from December’s 4.1%.
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Stock Market News for Feb 10, 2025
Wall Street closed sharply lower on Friday, pulled down by tech and discretionary stocks. Indexes registered losses after President Trump announced that reciprocal tariffs would be imposed on many countries. Numbers from the labor market also did not help. All three most widely followed indexes closed the session firmly in the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 1%, or 444.23 points, to close at 44,303.40. Twenty-five components of the 30-stock index ended in negative territory, four ended in positive, while one remained unchanged.
The tech-heavy Nasdaq Composite declined 268.59 points, or 1.4%, to close at 19,523.40.
The S&P 500 lost 57.58 points, or 1%, to close at 6,025.99. All of the 11 broad sectors of the benchmark index closed in the red. The Consumer Discretionary Select Sector SPDR (XLY), the Materials Select Sector SPDR (XLB) and the Technology Select Sector SPDR (XLK) retracted 2%, 1.2% and 0.9%, respectively.
The fear-gauge CBOE Volatility Index (VIX) increased 6.7% to 16.54. A total of 15.1 billion shares were traded on Friday, higher than the last 20-session average of 14.9 billion. Decliners outnumbered advancers by a 2.79-to-1 ratio on the NYSE, while on the Nasdaq Composite, declining issues had a 2.53-to-1 advantage.
Trump’s Policies Continue to Spook the Market
On Friday, President Trump said that his administration will announce reciprocal tariffs on many countries by Monday or Tuesday of this week, in what would be a major shakeup to the United States’ trade relations with its business partners. However, Trump did not mention the countries that would be impacted.
"I'll be announcing that, next week, reciprocal trade, so that we're treated evenly with other countries. We don't want any more, any less," Trump said during a meeting with Japan’s Prime Minister Shigeru Ishiba. For quite some time now, the returning President has been complaining about the European Union's tariffs on auto imports being much higher than what the U.S. charges. There is wide speculation that this week’s tariffs might address the issue.
While the move might go a long way in fulfilling Trump's campaign promise to be on the same keel with trading partners with regard to tariff imposition, the probable inflationary fallout has continued to spook the stock market in the United States. There is an opinion that by raising tariffs to pay President Trump’s 2017 tax cuts, the national debt could go up by trillions of dollars.
As a result, tech and discretionary stocks felt the maximum heat in the session. Consequently, shares of Alphabet Inc. (GOOGL - Free Report) and Marvell Technology, Inc. (MRVL - Free Report) declined 3.3% and 7.2%, respectively. Marvell currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Weekly Roundup
For the week, all three benchmark indexes accumulated losses, with the Dow breaking a three-week winning streak, ending 0.5% lower. The S&P slid 0.2% while the Nasdaq was lost 0.5%. The Trump administration’s tariff plans dominated the proceedings at the start and end of the week.
Economic Data
Per the Fed, in December 2024, consumer credit increased $40.8 billion, while the number was revised down to a decrease of $5.4 billion for November from the earlier reported $7.5 billion fall.
Per the University of Michigan, preliminary consumer sentiment for February decreased to 67.8 from 71.1 reported in January.
According to the U.S. Census Bureau, wholesale inventories for January decreased 0.5%. The number for December was revised down to a 0.1% decrease from the previously reported 0.2% decline.
The Labor Department reported that Nonfarm Payrolls had increased by 143,000 for January compared to the revised 307,000 in December. The December number was ramped up from the previously reported 256,000. Average Workweek came down to 34.1 from December’s 34.2. Average Hourly Earnings increased 0.5% compared to the December increase of 0.3%. Unemployment Rate in January decreased to 4% from December’s 4.1%.