US benchmark equity indexes experienced a decline during intraday trading as investors processed the latest economic data, which included a survey indicating a significant decrease in consumer sentiment. The Nasdaq Composite saw a reduction of 1.6%, settling at 19,634.5 on Friday afternoon, while the Dow Jones Industrial Average fell by 1.4% to reach 43,543.5.
The S&P 500 index lost 1.3%, closing at 6,037.1. All sectors faced losses except consumer staples, with consumer discretionary and industrials leading the downturn. In economic updates, US consumer sentiment dropped sharply by 9.8% sequentially, landing at 64.7 as reported in February. Concurrently, there was a noticeable surge in year-ahead inflation expectations, according to a survey conducted by the University of Michigan.
Surveys of Consumers Director Joanne Hsu highlighted growing concerns, stating that the survey revealed “fears that tariff-induced price increases are imminent.” Additionally, output growth in the US private sector unexpectedly decelerated in February, primarily due to a contraction in the services sector, with increasing worries over the implications of tariffs and potential domestic spending cuts, as reported by S&P Global’s flash purchasing managers’ index. Real estate data indicated that existing home sales in the US fell more than anticipated in January, driven by high mortgage rates and inflated house prices, as outlined by the National Association of Realtors.
NAR Chief Economist Lawrence Yun commented on the situation, stating, “Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve. When combined with elevated home prices, housing affordability remains a major challenge.” The 10-year US Treasury yield experienced a decline of 7.9 basis points, reaching 4.42% intraday, while the two-year rate also saw a decrease of 5.5 basis points, settling at 4.21%. In the corporate sector, Akamai Technologies saw a significant drop in its shares, plummeting 20%, marking the steepest decline on the S&P 500 following the company's announcement of disappointing quarterly and full-year financial expectations released late Thursday.
On a different note, UnitedHealth Group refuted allegations from The Wall Street Journal regarding a purported investigation initiated by the US Department of Justice into the health insurer’s Medicare billing practices. After the news, the company’s shares descended by 7%, making it the poorest performer in the Dow Index. Conversely, shares of MercadoLibre surged by 7.5%, making it the top gainer on the Nasdaq following the release of its quarterly results, which exceeded expectations. In commodities, West Texas Intermediate crude oil prices experienced a decline of 2.5%, trading at $70.66 a barrel during intraday on Friday.
Gold prices also witnessed a slight drop of 0.1%, settling at $2,953.80 per troy ounce, while silver prices fell by 1.5% to reach $33 per ounce..