US stocks pointed mostly lower Friday following a key inflation reading that largely met expectations and as fresh tariff threats added to uncertainty over Big Tech prospects.
The S&P 500 (^GSPC) wavered around the flatline, while the tech-heavy Nasdaq Composite (^IXIC) was down about 0.4% after suffering a Nvidia-led (NVDA) sell-off on Thursday. The Dow Jones Industrial Average (^DJI) added 0.2%.
Markets are heading into the last trading day of February facing sharp weekly and monthly losses after suffering the buffets of tariff moves. The Nasdaq Composite (^IXIC) is on track to fall over 5% in February, while the S&P 500 (^GSPC) and Dow (^DJI) are eyeing drops of around 3%. Meanwhile, the benchmark S&P has seen daily drops of over 1% on three trading days this week.
5,863.96
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+(0.04%)
As of 9:50:20 AM EST. Market Open.
^GSPC ^IXIC ^DJI
The January reading of Personal Consumption Expenditures index did its part to soothe some anxiety after recent data revived concerns about a slowdown in the economy and uptick in inflation. Annual "core" PCE — which strips out food and energy prices and is the Federal Reserve's preferred gauge of inflation — cooled to 2.6%, matching expectations.
But consumer spending fell 0.2% last month, the data showed. That undershot economist forecasts for a rise of 0.1% and compared with a gain of 0.8% in December.
Meanwhile, investors reeling from President Trump's fast-paced trade policy overhaul had to grapple with fresh tensions after China vowed to respond with "all necessary measures." Beijing's threat came after Trump said an extra 10% tariff on Chinese imports would take hold on Tuesday. He has also pledged to follow through on new duties on Mexico and Canada, and to impose tariffs on the EU.
Also, the sell-off in bitcoin (BTC-USD) deepened as the token sank 7% to its lowest level since November. The cryptocurrency has dropped 25% from its record high amid a broader crypto rout.
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