4:12pm: Investors flee
Stocks pulled back sharply on Friday afternoon as the uncertainty around the economic outlook under Trump’s tariffs threats prompted a selloff.
The Nasdaq led the losses, down 2.2% at 19,524 points. The Dow Jones was down 1.8% at 43,397 points while the S&P 500 shed 1.7% at 6,012 points.
Oil, meanwhile, fell to its closing price of 2025 at $70.25 per barrel as a breach of a crucial technical threshold intensified losses. This decline was fueled by the potential for increased oil flows from Iraq, which diminished the expectations of supply constraints that have recently affected the market.
3:10pm: Gold's great week
The price of gold reached a fresh all-time high this week as uncertainty about the impact of US tariffs on the global economy spurred purchases of the safe-haven asset.
Central banks, particularly in emerging markets such as China and India, have been increasing their gold reserves, reflecting a growing lack of confidence in the US dollar and a move towards diversifying away from it.
Gold hit a record $2,954.69 per ounce on Thursday but pulled back during Friday’s session as investors secured their profits.
Analysts see gold prices continuing to rise, with Goldman Sachs predicting a climb to $3,100 per ounce and UBS suggesting a possible peak of $3,200.
12:42pm: Stocks under pressure
US stocks remained in negative territory on Friday afternoon amid fears Trump’s tariffs will lead to prolonged elevated inflation.
The Dow Jones was down 1.2% at 43,665 points while the Nasdaq fell 1.3% at 19,702 points and the S&P 500 fell 1% to 6,058 points.
“The underperforming Dow Jones Industrial Index has been dragged down by United Health's 12% fall due to a Department of Justice investigation into its Medicare billing practices,” said Axel Rudlph, IG senior technical analyst.
Meanwhile, gold retreated from its record high on profit taking but remain on track for an eight week of gains.
11:25am: Existing home sales fall
"A chill swept through the housing market in January," analysts at Wells Fargo warned as US existing home sales fell 4.9% in January to a 4.08 million-unit pace, breaking a three-month streak of gains.
The decline was driven by rising mortgage rates, which remain near 7% despite expected Fed rate cuts.
Low housing supply continues to push prices higher, further straining affordability for buyers.
"A recent pullback in mortgage demand implies further weakness for home sales in the coming months," Wells Fargo wrote.
"All told, 2025 is setting up to be another challenging year for the housing market given a restrictive rate environment is likely to persist, preventing a meaningful improvement in affordability."
10.17pm: Business activity growth slows
Friday’s declines were fuelled by figures showing business activity across the States almost stalled in February.
According to S&P Global, the composite purchasing managers index dropped from 52.7 to 50.4 between January and February, signalling slowing growth.
Talk of stagflation had already been stoked by sweeping tariffs under Donald Trump.
“The upbeat mood seen among US businesses at the start of the year has evaporated, replaced with a darkening picture of heightened uncertainty, stalling business activity and rising prices,” S&P economist Chris Williamson said.
“Optimism about the year ahead has slumped from the near-three-year highs seen at the turn of the year to one of the gloomiest since the pandemic.
“Companies report widespread concerns about the impact of federal government policies, ranging from spending cuts to tariffs and geopolitical developments.
“Sales are reportedly being hit by the uncertainty caused by the changing political landscape, and prices are rising amid tariff-related price hikes from suppliers.”
Dow was down 0.8%, while the S&P 500 and Nasdaq dropped 0.4% and 0.3% respectively.
9.42am: Dow Jones slumps further in mixed open on Wall Street
Wall Street got off to a mixed start on Friday, with the Dow Jones falling even further as concerns around the impact of president Donald Trump’s tariffs continued to weigh.
Dow shed 0.7% after the bell, on the back of a 1.0% drop in Thursday’s session, after fears of inflationary pressure on the tariffs sparked talk of stagflation.
The S&P 500 also fell, while the Nasdaq marked a bright spot with a slight rise early on.
For the Dow, Walmart Inc continued to weigh after unwhelming with figures on Thursday, while Unitedhealth Group Inc sank 8% on news of a Department of Justice probe.
MercadoLibre Inc topped the Nasdaq’s risers in the meantime, gaining almost 10% after the online marketplace operator posted expectation-beating fourth-quarter figures.
6.52am: Slight gains expected
Wall Street looked on course for a brighter start to Friday’s session after lingering fears around stagflation on Donald Trump’s sweeping tariffs hit stocks the day before.
The Dow Jones, having shed 1.0% on Thursday, was seen climbing 0.1% ahead of the opening bell.
Futures had the Nasdaq rising by 0.1% in the meantime, as the S&P 500 looked to move just above the mark in a slight reverse on Thursday’s decline.
Markets have been mulling the impact of sweeping tariffs under Trump, sparking fears of renewed inflationary pressure.
Alongside measures against Chinese goods, steel and aluminum imports, delayed levies against Canada and Mexico, plans have been unveiled for reciprocal taxes on countries with those on US goods, as well as tariffs on autos, semiconductors and pharma imports.
Brandywine Global portfolio manager Jack McIntyre told Reuters concerns now lingered around “stagflation”.
He said: “We have these policies that could hurt consumer demand even while persistent inflation limits the Federal Reserve's ability to manoeuvre.
“It's not a zero-possibility scenario any more, by a long shot.”