Wall Street Slips Toward Fifth Consecutive Weekly Loss

Wall Street Slips Toward Fifth Consecutive Weekly Loss/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks fell Friday, placing Wall Street on track for a fifth consecutive weekly loss—its longest losing streak in nearly two years. Concerns over tariffs, stubborn inflation, and corporate earnings weighed heavily on markets. Major companies like Nike, FedEx, and Lennar reported disappointing forecasts amid economic uncertainty.

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Wall Street Weekly Decline: Quick Looks

• S&P 500 down 0.9%, marking worst weekly run since 2022
• Dow falls 453 points; Nasdaq drops 0.7% in morning trading
• Market pressured by inflation, tariffs, and Fed policy uncertainty
• Nike drops 7.9% on weak outlook citing tariffs, low confidence
• FedEx slumps 10% after slashing profit and revenue guidance
• Lennar shares fall 7% on weak housing forecast
• Airlines dip after Heathrow Airport power outage halts travel
• European markets also fall; FTSE 100 and DAX in red

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Wall Street Slips Toward Fifth Consecutive Weekly Loss

Deep Look

Wall Street Slides as Economic Uncertainty Grows, Extending Weekly Loss Streak

Wall Street continued its downward trend Friday, with major U.S. indexes falling sharply as investors reacted to fresh signs of economic strain and persistent policy uncertainty. The S&P 500 dropped 0.9% in morning trading, heading toward its fifth consecutive weekly loss—its worst streak since mid-2022.

The Dow Jones Industrial Average shed 453 points, or 1.1%, by mid-morning, while the tech-heavy Nasdaq composite slipped 0.7%. The extended selloff reflects deepening investor anxiety over rising tariffs, inflationary pressures, and ambiguous signals from the Federal Reserve.

For weeks, markets have faced mounting stress, primarily driven by fears that escalating trade tensions—fueled by renewed tariffs under the Trump administration—could further complicate the Federal Reserve’s efforts to rein in inflation. Despite recent efforts, inflation remains stubbornly above the Fed’s 2% target, and higher trade barriers risk compounding cost pressures for consumers and businesses alike.

Major corporations across sectors are beginning to feel the impact. Nike led the market’s corporate laggards, plunging 7.9% after forecasting a significant revenue decline for the current quarter. The sportswear giant cited geopolitical instability, new tariffs, and a weakening consumer environment as primary headwinds.

FedEx also took a significant hit, tumbling 10% after revising its profit forecast downward. The package delivery company now expects flat or slightly declining revenue year-over-year, highlighting growing pressure on global logistics and consumer demand.

The housing sector added to the bleak outlook. Homebuilder Lennar dropped 7% following a disappointing forecast for new orders and average sales prices. The company noted that high interest rates, ongoing inflation, and declining buyer confidence are weakening the already fragile housing market.

High interest rates, which the Fed has kept steady during its most recent policy meeting, remain a significant hurdle for sectors like real estate and consumer lending. While the central bank opted to hold its benchmark rate steady this week, officials signaled caution as they monitor how new tariffs and policy changes might influence economic stability.

In the bond market, Treasury yields edged slightly lower. The yield on the 10-year Treasury slipped to 4.21%, down from 4.23% the previous day. Lower yields suggest that investors are moving toward safer assets amid growing market volatility.

Airline stocks were also hit hard following a fire-related power outage at London’s Heathrow Airport, one of the world’s busiest travel hubs. The incident disrupted international travel, impacting hundreds of thousands of passengers. American Airlines, United Airlines, and Delta Airlines each fell more than 2% in response.

Global markets reflected similar pessimism. The UK’s FTSE 100 dipped 0.7% after the Bank of England decided to keep its interest rate unchanged, citing inflation concerns. Germany’s DAX also lost ground, slipping 1% as broader European sentiment followed the U.S. market’s downward trajectory.

This extended downturn puts renewed focus on economic resilience in the face of both domestic and global challenges. With trade disputes reemerging, inflationary pressures lingering, and key earnings signals turning negative, investors are bracing for continued market turbulence as the quarter progresses.

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