In a notably turbulent trading session, US benchmark equity indexes ended lower on Friday as investors carefully analyzed the latest economic data. A significant survey revealing a decline in consumer sentiment drew attention, raising concerns about the overall health of the economy. The University of Michigan conducted a survey revealing that US consumer sentiment experienced a staggering 9.8% decrease, falling to 64.7 in February.
This downturn was accompanied by a sharp increase in year-ahead inflation expectations. Joanne Hsu, the Director of the Surveys of Consumers, highlighted that this shift signals "fears that tariff-induced price increases are imminent," reflecting rising anxieties among consumers nationwide. Compounding these concerns, economic output growth in the US private sector unexpectedly slowed in February.
S&P Global's (SPGI) flash purchasing managers' index reported a contraction in the services sector, showcasing waning optimism as worries about tariffs and impending domestic spending cuts took center stage. Meanwhile, in the commodities market, April West Texas Intermediate crude oil slipped $2.19, settling at $70.29 per barrel.
Similarly, April Brent crude, recognized as the global benchmark, echoed this decline, closing down $2.19 at $74.29 per barrel. In corporate developments, shares of MercadoLibre ($MELI) experienced a notable rise of 7.1%, following the company's announcement late Thursday of achieving a quarterly earnings beat.
In contrast, UnitedHealth Group ($UNH) faced turbulence as they refuted a report by The Wall Street Journal regarding an investigation by the US Department of Justice into the health insurer's Medicare billing practices, leading to a decline of 7.3% in the company's stock. As an ongoing theme in the current market environment, the juxtaposition of robust corporate performances against a backdrop of economic uncertainty continues to shape investor sentiment and strategic decision-making..