U.S stocks continued to tumble on Friday, falling sharply to mark its worst performance of the year 2025.
The falling stocks came in the wake of reports indicating that worries about President Donald Trump’s radical policies may have taken a hit on the U.S economy sparking concerns among investors.
All three major US stock indexes told a consistent story of with the S&P 500 recording its largest single-day percentage drop since 18 December, as did the small-cap Russell 2000.
U.S Stocks fall sharply
The week closed with S&P 500 plunging 1.7% signaling a bad day for the U.S stock market.
The Dow Jones Industrial Average sank 1.7%, with Nasdaq composite falling 2.2%, telling a consistent story in what some experts opine contradicts the rosy picture of a thriving economy painted by proponents of Trump’s policies.
Billions wiped out
Established analysts note that the $927 billion was wiped out in a single day with experts watching the impact of Trump’s policies and the micro as well as the macro-economic environment on the U’S stocks.
According to the preliminary report from S&P Global, activity unexpectedly shrank for U.S. services businesses.
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The rapid and unexpected shrinking was attributed to a slump in optimist sparked by worries over Washington’s policies and its resultant effects on the market.
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.” Chris Williamson, chief business economist at S&P Global Market Intelligence stated.
What the future holds and preparation for inflation
Other reports attributed the fall in stock to U.S consumers cutting down on spending in preparation for higher inflation as a result of potential tariffs that will see the prices of imports rise sharply.
According to a survey by the University of Michigan, inflation is set to be a factor in the coming months and is expected to rise to 4.3% twelve months from now, exceeding a forecast done by the institution last month which placed it at 3.3%