NEW YORK (AP) — Stock prices on the New York Stock Exchange lost the gains they had achieved during the day on Friday and closed lower after the White House announced that President Donald Trump would impose the promised tariffs on some of the United States’ trading partners.
In total, the S&P 500 index fell 30.64 points, or 0.5%, to 6,040.53, and the Nasdaq composite dropped 54.31 points, or 0.3%, to 19,627.44. Both had solid gains in morning trading and recorded their first weekly loss in three weeks. Meanwhile, the Dow Jones Industrial Average fell 337.47 points, or 0.8%, to 44,544.66.
Trump will impose a 25% tariff on imports from Canada and Mexico, and a 10% tariff on products from China starting on Saturday. The White House did not provide information on whether there would be any exemptions to the measures, which could result in rapid price increases for American consumers.
The sale was broad, and approximately 75% of the stocks in the S&P 500 closed lower. Technology and energy companies accounted for a large part of the decline.
"If Trump says it's something that could happen tomorrow, that doesn't leave much room for maneuver," said Sam Stovall, chief investment strategist at CFRA. "There is so much uncertainty related to raising tariffs on our three major trading partners."
Previous gains on Wall Street had helped reduce losses since the beginning of the week due to concerns that the boom in artificial intelligence might not require as much investment as previously thought.
Apple was leading market gains on Friday, but closed with a 0.7% loss. The company had reported stronger earnings in the last quarter than analysts had expected. As the most valuable company on Wall Street, and therefore the most influential in the S&P 500 and other indices, it indicated that iPhone sales had decreased. However, revenues from its services businesses, such as AppleCare and its app store, reached a record high.
KLA, a provider for the electronics industry, initially rose after reporting earnings and revenues that exceeded analysts' expectations, but later closed with a 0.6% decline. The company, which attributed its results to the expansion of investments in artificial intelligence and high-performance computing, fell by 6.3% on Monday.
Nvidia's shares, considered the flagship of the AI fever, fell 3.7% to close a tough week for integrated circuit manufacturers. It was planned for their CEO, Jensen Huang, to meet with Trump on Friday in Washington.
Concerns that tariffs could end up boosting inflation helped drive up long-term bond yields, including the 10-year Treasury yield, which rose from 4.52% to 4.54%.