US stocks fell Friday as investors weighed mixed messages from the Federal Reserve and grappled with the potential implications from President Trump's additional tariffs set for April 2.
The Dow Jones Industrial Average (^DJI) dipped 0.7%, while the S&P 500 (^GSPC) dropped 0.8%. The tech-heavy Nasdaq Composite (^IXIC) fell more than 0.8%.
The S&P 500 and Nasdaq, both of which have entered into correction territory in a downbeat start to 2025, are trying to snap four-week losing streaks.
Most of their gains came as Wall Street rallied following the Fed's decision on Wednesday, buoyed by the central bank staying the course for two more rate cuts this year. Chair Jerome Powell also reassured investors that the economic impact of Trump's trade war seemed manageable, adding that recession risks remain low.
However, by Thursday, the underbelly of the Fed's decision started to weigh on Wall Street, sending stocks lower. The central bank had updated its projections to reflect higher inflation and lower economic growth, two concerns that have deeply rattled markets as more tariffs loom.
Some analysts also noted that the last time the Fed described inflation risks as "transitory," as Powell did at a press conference on Wednesday, what came next was the most aggressive rate-hike campaign the US had seen in decades.
The next major deadline for Trump's trade policy is less than two weeks away. Trump has given himself broad leeway to negotiate with countries in the meantime, adding to Wall Street's sense that despite some reassurances this week, only more uncertainty lies ahead.
FedEx (FDX) and Nike (NKE) stocks fell on Friday in early trading as investors reacted to fresh concerns over tariffs and economic uncertainty. FedEx shares dropped after the company slashed its fiscal 2025 forecast, fueling fears about slowing industrial demand.
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