Dow Drops Nearly 800 Points Amid Tariff and Inflation Fears

U.S. stock markets experienced significant declines on Friday, primarily driven by rising concerns about inflation linked to President Trump's tariffs. The Dow Jones Industrial Average fell by 800 points, while the S&P 500 and Nasdaq also posted substantial losses. A report from S&P Global highlighted that U.S. business activity is nearing a standstill, with many companies expressing pessimism about the federal government's policies impacting their sales. Concurrently, a survey from the University of Michigan indicated that consumer sentiment had dropped significantly, with expectations for inflation rising from 3.3% to 4.3% over the next year. This economic uncertainty is feeding fears that consumer spending, which constitutes over two-thirds of the economy, could decline. Notably, Walmart's recent forecasting of slower sales growth further contributed to the market's downward trajectory, reflecting broader worries about the economic outlook.