The stock market falls into the worst week in months as tariffs fall on Wall Street

The stock market has suffered its worst weeks for months after a series of eye-opening policies from the White House regarding tariffs amid concerns over economic health.

The S&P 500 was measured throughout the day on Friday, marking a volatile end to the turbulent week as investors analyzed the latest employment data and comments from Federal Reserve Chair Jerome H. Powell on the direction of interest rates.

The Index closed the day on profits, but the S&P 500 notched its third consecutive week of losses with a 3.1% decline.

There has been a sharp change in the atmosphere since the index hit a record high a month ago, as investors worry about the economic growth trajectory. The survey also raises concerns among consumers.

On Friday, investors appeared to have raised comfort from Powell's comments, saying, “Even with the level of uncertainty rising, the US economy remains in a good place.” He reiterated the Fed's commitment to stabilizing interest rates as it works to reduce inflation. Another positive indication on Friday came from the labor market. The data, which added 151,000 jobs in February, showed a slower pace of employment that was sufficient to alleviate fears of revival inflation, but robust enough to avoid any worsening concerns about the slowing of the economy.

Lara Castleton, head of US portfolio construction and strategy at Janus Henderson Investors, said employment data would likely ease “overly sour expectations” about the economy. “My trust in the economy has changed,” she said. “Market participants were trying to confirm or reverse that sentiment.”

It was already a bruise week for investors after 25% tariffs came into effect in Mexico and Canada on Tuesday, but another 10% tariffs came into effect in China. The concessions came on Thursday, suspending tariffs on many goods from Canada and Mexico, but were unable to blow the rally.

There were other signs of strain. The US dollar suffered the worst week in more than two years, slipping over 3% against the currency baskets of its major US trading partners. Both the Mexican peso and the Canadian dollar were bolstered against the US dollar after a two-week loss.

And other areas of the market that initially benefited after Trump's election are under pressure. Tesla, an electric car company run by Elon Musk, has halved its value since December. Bitcoin has dropped by around 20% over the same period.

“We are pleased to announce that Jim Caron, Chief Investment Officer of the Portfolio Solutions Group at Morgan Stanley Investment Institute,” said: He said the main stock indexes remained close to record highs despite recent sales, and the economy remained in good condition.

Many of the divestitures are driven by large technology companies, and because of their size, they have a major impact on a wide range of indexes. Since the S&P 500 peaked on February 19th, the index has only exceeded 6%. Another measure that gives all stocks equal weight within the index decreased by 4.4% over the same period.

What's not clear is whether investors are seeing the tide of tech companies on the rise or whether they are selling for wider concerns. The tech giant, backed by the opportunity of artificial intelligence, was rising sharply this year until more competition began to enter the AI ​​market.

The threat of competition has created sales pressure, but investors may be pulled back as they worry about the wider trajectory of the market.

All 11 sectors in the S&P 500 ended in red with all sectors except medical stocks, with financial and consumer discretionary stocks participating in technology amid the worst performance.

The Russell 2000 Index for small businesses exposed to economic decline and currents has fallen even further than the S&P 500. This week it fell 3.8%, nearly 15% below 15% this week, surpassing its recent peak in November.

“We've had a very challenging news cycle in recent weeks, and perhaps for a few weeks,” Caron said. “We need to get through that and assess how much damage the market is.”