Dow plunges more than 700 points than inflation and tariff fears

Cnn
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The US stock markets fell back on Friday after an economic report showed that American consumers are increasingly afraid of price increases and how President Donald Trump’s tariffs could reinforce the inflation crisis.

The Dow Jones Industrial Average fell by 748 points or 1.7%. The wider S&P 500 also dropped 1.7% and the Nasdaq was 2.2% lower. The dow fell for the second time in a row and fell by about 1,200 points in the course of Thursday and Friday.

The latest survey by the University of Michigan, which was published on Friday, showed that the US consumer mood in February decreased by 10% for the second time in a row after a last reading from January. That was twice as high as the decline in the beginning of this month.

The survey showed that Americans lose confidence in the economy, which is mainly driven by concerns about Trump’s tariffs that may increase prices.

A new CNN survey published on Thursday showed pessimism on the rise: Almost two thirds of the US -growing across the country, 62%, stated that Trump was not doing enough to tackle inflation. Michigan’s survey showed that the Americans are now afraid of a higher inflation on the horizon.

Investors were feared that a weak consumer mood could lead to a withdrawal to the Americans’ shopping habits. Consumer expenses make up more than two thirds of the US economy.

Although there is no evidence that a recession is everywhere on the horizon, the economic data has weakened in recent months. Employment growth has broken off over the past year because the employers are waiting to see what the Trump government’s economic policy will bring – especially by tariffs, which could significantly impair the company’s profit. The apartment continues to slow down: A report by the National Association of Realtors on Friday shows that sales of existing houses in January fell by 4.9% compared to the previous month, while prices for the month rose to a record high and the crisis of affordability tighten from America.

Retail sales have also dropped recently.

On Thursday, Walmart warned that his sales and profit growth will slow down this year – a surprise for many on Wall Street, the bets crisis.

The retailer accused the fears of consumers about rising prices and tariffs for their poor growth forecast. This was reproduced by the University of Michigan’s survey on Monday, in which January was found to the highest level since November 2023.

In addition, Unitedhealth, an important Dow component, who took 7% in a report by Wall Street Journal that the US Ministry of Justice examined the company for its Medicaid Billing practices. The company emphasized the journal’s report.

Despite the diving up, the stocks are very close to their highs. The S&P 500 made a record on Wednesday before it only fell back on Thursday.

Bryan Mena from CNN contributed to this report.