US Stocks Drop Sharply on Economic Slowdown Fears

US stocks experienced significant losses on Friday, with the Dow Jones Industrial Average falling 1.7% and the S&P 500 and Nasdaq Composite also declining sharply amid concerns over an economic slowdown. Key reports indicated that US business activity is nearing a standstill, with the S&P Global services index hitting a 17-month low and consumer sentiment dropping to its lowest point since November 2023. Analysts pointed to disappointing retail sales and tepid forecasts from major retailers like Walmart, exacerbating fears about the economy as tariffs and government job cuts loom. The losses were widespread, affecting various sectors, with small-cap stocks suffering the most. UnitedHealth Group faced scrutiny due to a Justice Department investigation, contributing to its 7.3% drop. Despite these downturns, Wall Street has remained resilient overall this year, with no immediate recession forecasts.