Wall Street on Track for Worst Week Since 2022 as Losses Deepen/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street continued its downward slide on Friday, with the S&P 500 falling 1% and the Dow Jones dropping 340 points as concerns over economic growth and trade uncertainty mounted. Despite a jobs report that met expectations, investors remain wary of President Donald Trump’s fluctuating tariff policies and their potential impact on business confidence, consumer spending, and inflation. The S&P 500 is now down more than 7% from its record high last month, marking its worst week since 2022.
Wall Street Selloff: Quick Look
- Stock Market Struggles
- The S&P 500 fell 1%, Dow down 340 points.
- Markets on pace for worst week since 2022.
- Key Economic Report In Focus
- U.S. added 151,000 jobs in February, slightly below forecasts.
- Unemployment ticked up to 4.1%, raising concerns.
- Uncertainty Over Trump’s Trade Policies
- Tariff exemptions and reimpositions fuel business uncertainty.
- Investors worry about higher inflation and weaker spending.
- Tech and Retail Stocks Struggle
- Hewlett Packard (-16.2%) and Costco (-7.2%) sink.
- Walgreens Boots Alliance rises 6.9% on private equity buyout.
- Bond Yields Decline
- 10-year Treasury yield falls to 4.23%, signaling economic slowdown fears.
- Global Markets React
- China’s trade data disappoints, weighing on Asian stocks.
- German markets drop after major policy shift on debt.
Wall Street on Track for Worst Week Since 2022 as Losses Deepen
Wall Street Selloff Deepens: Deep Look
Market Turmoil Intensifies as Stocks Struggle for Stability
This week’s selloff marks the worst for markets since 2022, with the S&P 500 down more than 7% from its record high set in February. Investors continue to grapple with economic uncertainty, fluctuating trade policies, and fears of an economic slowdown.
Jobs Report Fails to Reassure Investors
The Labor Department reported 151,000 jobs added in February, slightly below expectations but an improvement from January’s revised 125,000 gain. However, the unemployment rate ticked up to 4.1%, raising concerns about whether the labor market is starting to weaken.
“The market might breathe a sigh of relief that the labor market was still looking healthy, but a deeper dive shows that spring could be a more challenging season,” said Brian Jacobsen, chief economist at Annex Wealth Management.
One concerning sign: the number of part-time workers who want full-time jobs rose 10% from January, a potential red flag for consumer spending and overall economic strength.
Tariff Uncertainty Adds to Market Jitters
Wall Street remains on edge as Trump’s erratic trade policies create uncertainty for businesses. The president has imposed, removed, and reimposed tariffs on trading partners in recent weeks, leaving companies hesitant to invest or hire.
Consumers are also bracing for higher inflation due to tariff-related price increases, which could further weaken spending and economic growth.
Tech and Retail Stocks Suffer Heavy Losses
Some of the biggest losers in Friday’s selloff included:
- Hewlett Packard Enterprises (-16.2%) after missing profit expectations and warning of weaker-than-expected revenue ahead.
- Costco (-7.2%) following a disappointing quarterly profit report.
Meanwhile, Walgreens Boots Alliance (+6.9%) bucked the trend, rallying on news that private equity firm Sycamore Partners will take it private for the first time since 1927.
Bond Yields Drop Amid Economic Slowdown Fears
The 10-year Treasury yield fell to 4.23% from 4.28%, continuing a downward trend as investors increasingly expect the Federal Reserve to cut interest rates in response to economic softness.
The yield on the two-year Treasury note also fell, reflecting growing expectations of at least two or three Fed rate cuts in 2025.
Global Markets React to U.S. Economic Worries
Overseas markets were also under pressure, with:
- Germany’s stock index falling 1.8%, reversing gains from earlier in the week after a major policy shift on debt and borrowing.
- China’s markets sliding after weaker-than-expected trade data, with exports growing just 2.3% while imports plunged 8.4%.
- South Korea’s Kospi losing 0.5% after a court ordered the release of impeached President Yoon Suk Yeol following corruption charges.
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