NEW YORK (AP) — Stocks fell in morning trading Friday and Wall Street is veering toward its fifth straight weekly loss.
The S&P 500 fell 0.6%. The index, which is a benchmark for the broader market's health, is facing its worst weekly losing streak in nearly two years.
The Dow Jones Industrial Average fell 228 points, or 0.5%, as of 11:19 a.m. Eastern. The Nasdaq composite fell 0.6%.
Technology stocks were the biggest weight on the market. The sector has been at the center of much of the market's recent sell-off in a reversal from their market-driving gains throughout the previous year. The stocks are among the most valuable on Wall Street and have outsized impacts on the whether the market gains or loses ground.
Nvidia fell 1.7% and Microsoft fell 0.6%.
Stocks have been losing ground for weeks over uncertainty about the direction of the U.S. economy. A trade war between the U.S. and its key trading partners threatens to worsen inflation and hurt both consumers and businesses. Inflation remains stubbornly above the Federal Reserve's goal of 2% and tariffs could hurt the central bank's efforts to ease the rate of inflation.
Businesses have been warning investors about tariffs, inflation and growing uncertainty about the impact to costs.
Nike slumped 6.5% after it forecast a steep decline in revenue in the current quarter, blaming geopolitical dynamics, new tariffs by the Trump administration and a less confident consumer.
FedEx tumbled 9% after the package delivery company said it expects revenue to be flat to slightly down year-over-year and lowered its per-share profit guidance.
Homebuilder Lennar fell 5.5% after giving investors a weaker-than-expected forecast for new orders and average sales prices for the current quarter. It said high interest rates, inflation, and waning consumer confidence are weighing on an already tough housing market.
High interest rates have been a key issue for the housing market. The Federal Reserve held its benchmark interest rate steady at its most recent meeting this week as it assesses the potential impact from tariffs and other U.S. policy shifts.
The Fed cut interest rates through the end of last year amid consistently easing inflation rates, but has been holding steady so far in 2025. Lower rates can bolster the economy, but they can also push inflation higher.
Fed Chair Jerome Powell has acknowledged that the economy remains solid, but stressed that uncertainty is making forecasting difficult.
A recent batch of economic reports on home sales, industrial production and unemployment reinforced the view that the economy is holding strong. But other reports on consumer sentiment and retail sales have revealed rising caution from consumers.
In the bond market, Treasury yields mostly held steady. The yield on the 10-year Treasury rose to 4.24% from 4.23% late Thursday.
Airlines were under pressure. A fire knocked out power at London's Heathrow Airport, forcing it to shut down and disrupting global travel for hundreds of thousands of passengers. Ryanair Holdings fell 1.6%.
U.S.-based airlines, including American Airlines and United Airlines, held relatively steady.
Markets in Europe fell. Britain's FTSE 100 shed 0.6% after the Bank of England held its main interest rate steady a day earlier.
Germany's DAX slipped 0.7%. German lawmakers voted for a budget that will boost defense and infrastructure spending.
___
Jiang Junzhe and Matt Ott contributed to this report.
Credit: AP
Credit: AP
Credit: AP
Credit: AP
Credit: AP
Credit: AP
Credit: AP
Credit: AP
Credit: AP
Credit: AP
Keep Reading
The Latest
Featured
