Dow, S&P 500, Nasdaq retreat on weak consumer sentiment

US stocks turned lower on Friday as investors digested a jump in consumer expectations for inflation and the monthly jobs report.

The S&P 500 (^GSPC) moved 0.5% lower, while the tech-heavy Nasdaq Composite (^IXIC) slid 1%. The Dow Jones Industrial Average (^DJI) also fell 0.5%, on the heels of a mixed day for stocks on Wall Street.

The markets took a leg lower after a report from Reuters said President Trump told Republican lawmakers that he plans to announce reciprocal tariffs on American imports as early as Friday.

The major gauges slid earlier into the red after US consumer sentiment sank to a seven-month low in early February, undershooting forecasts. Inflation expectations jumped amid concerns about Trump’s tariff threats.

Americans now expect a rate of 4.3% over the next year, a full percentage point higher than last month, the University of Michigan survey found.

The 10-year Treasury (^TNX) yield rose to 4.5% in the wake of the sentiment update and the monthly jobs report.

The US economy added 143,000 jobs in January, missing economist expectations, but still showing signs of resilience in the labor market. Unemployment ticked down to 4.0%, from 4.1% in December.

The jobs report has become more crucial to hopes for another Federal Reserve interest-rate cut. Investors are watching for cracks in the market’s stability, as they eye President Donald Trump’s tariff push and the chances of higher inflation.

Meanwhile, eyes were on Amazon’s (AMZN) earnings after it joined Google (GOOG) and other AI-focused Big Tech companies in disappointing Wall Street with its revenue outlook. Shares in Amazon dropped 4%.

The three major gauges are still just about on track to close the earnings-packed week with small gains, even after unpredictable tariff news from Trump kept traders on their toes..

LIVE 9 updates

Big Tech is a pawn in US-China trade war. Here’s why some will feel the heat more than others.

Yahoo Finance’s Dan Howley reports:

President Trump’s trade war with China kicked off on Tuesday, with the White House implementing a 10% tariff on all Chinese goods coming into the US. Silicon Valley’s biggest companies are already getting caught up in what could turn into a series of tit-for-tat actions between the world’s two largest economies.

On Tuesday, China’s State Administration for Market Regulation (SAMR) announced that it is opening an antitrust investigation into Google (GOOG, GOOGL). The agency didn’t provide any additional details about the move.

Wednesday, Bloomberg reported that China is considering launching an antitrust investigation into Apple’s (AAPL) App Store practices. SAMR officials have been speaking with Apple executives for some time already, but the timing of the potential probe sets up Apple as another pawn in the economic chess match between the superpowers.

Read more here.
Consumers are starting to think 7% mortgages are here to stay

Today’s higher mortgage rate reality is finally sinking in with potential homebuyers and sellers.

For months, a plurality of consumers polled by Fannie Mae were confident that mortgage rates would drop in the next year. But the mortgage giant’s latest poll showed a 13-point swing away from that view.

Just 35% of respondents surveyed by the mortgage giant in January now expect mortgage rates to drop, down from 42% in December and a survey-high 45% in November. Meanwhile, the share of consumers who think rates will rise jumped to 32%, from 25%.

Housing market economists have warned that mortgage rates might not fall much this year after the Fed lowered its expectations for rate-cutting, and uncertainties linger over how President Donald Trump’s economic agenda could affect inflation and economic growth.

The average 30-year mortgage rate was 6.89% this week through Wednesday. It’s been hovering around 7% for all of 2025.
Major averages turn negative after weak consumer sentiment data

The major averages turned negative after consumer sentiment data fell below expectations for the month of February.

The Michigan consumer sentiment index dropped to 67.8, coming in below expectations of 71.8. The February preliminary reading was the lowest registered in about 7 months.

“Year-ahead inflation expectations jumped up from 3.3% last month to 4.3% this month, the highest reading since November 2023 and marking two consecutive months of unusually large increases,” said the survey.

By 10:15 a.m. ET, the S&P 500 (^GSPC) sank 0.3% and the tech-heavy Nasdaq Composite (^IXIC) sank 0.8%. The Dow Jones Industrial Average (^DJI) also fell 0.2%.

Meanwhile the 10-year Treasury yield rose to 4.5%.

Among the Big Tech names, Amazon’s (AMZN) stock sank to session lows, dipping nearly 4% after the e-commerce giant issued disappointing…

Dow, S&P 500, Nasdaq retreat on weak consumer sentiment

Big Tech is a pawn in US-China trade war. Here’s why some will feel the heat more than others.

Consumers are starting to think 7% mortgages are here to stay

Major averages turn negative after weak consumer sentiment data

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