Global market: After President Donald Trump said that he plans to announce tariffs on several countries next week after weak jobs and consumer sentiments, all three American stock index closed down on Friday. Trump did not say which countries will affect it, but he said that it would be a big effort, which can also help in solving US budget problems. After Trump announced a wide -scale tariff in the weekend, the weeks started for the US markets disappointing. However, he later postponed the tariffs on the goods coming from Mexico and Canada on Monday for a month.
A survey in the US suggests that the US Consumer Sentment unexpectedly came to a seven -month low in February and the expectations of inflation are touching the sky. In the US, people are expected to increase inflation to 4.3 per cent next year, which is the highest high level since November 2023.
Another report has shown that the employment growth in the US in January has been slower than expected. Whereas in the first two months it had a strong growth. In such a situation, the Fed may get a chance to stop the interest rate cuts by at least June at a 4 per cent unemployment rate.
The final employment report under the administration of the former President, Joe Biden, has shown that 598,000 less jobs have been created in the earlier estimate of 12 months till last March. However, the final payroll benchmark revision was less than an estimated 818,000 jobs in August.
Dow Jones Industrial Average fell 444.23 points to close at 44,303.40 in Friday’s trading session. The S&P 500 index fell 57.58 points or 0.95 per cent to 6,025.99 and the Nasdaq Composite fell 268.59 points or 1.36 per cent to close at 19,523.40. On Friday, all 11 S&P 500 sectors declined, with a decline of nearly 2.5 per cent in the consumer discretionary sector.
All three index on the weekly basis also closed down. Dow Jones broke the revival of three weeks and closed down 0.54 per cent. S&P declined by 0.24 per cent while Nasdaq saw a decline of 0.53 per cent.
Uber saw a rise of 6.6 per cent after the hedge fund manager Bill Ekman disclosed a major stake in the company. Amazon.com declined by 4.1 per cent due to weakly in the retailer’s cloud computing unit, weakly in Amazon web services and weak forecasts of first quarter earnings and profits.
Government’s focus on growth and fiscal stability, in which theme will be seen in great growth- Harish Bihani
The CBOE volatility index, known as Wall Street’s Fear Index, rose 6.6 per cent to 16.3 on Friday. Traders of the short-top interest-rate futures now hope that the US Fed will cut interest rates only once this year.