US stocks slide as concern mounts over consumer demand and tariffs

The US stock market tumbled on Friday, extending a sell-off as gloomy economic reports pile up and concerns grow over President Donald Trump's tariff proposals and signs that consumer demand is softening.

All three major US stock indexes posted losses: the S&P 500 lost 104.01 points, or 1.70 per cent, to end at 6,013.46 points, while the Nasdaq Composite lost 434.97 points, or 2.20 per cent, to 19,524.01. The Dow Jones Industrial Average fell 751.33 points, or 1.69 per cent, to 43,428.02.

“I don't like all this red on a Friday,” said Greg Bassuk, CEO at AXS Investments in New York. “We're seeing consumer sentiment, tariffs and corporate earnings having leapfrogged AI and technology as the primary drivers of market direction.”

Economic data showed US business activity decelerating and consumer sentiment deteriorating, with survey participants expressing an increasingly gloomy outlook in the face of economic unknowns.

The data comes on the heels of Walmart's disappointing guidance on Thursday, which sparked fears of dampening consumer demand.

Reuters reported that US businesses' optimism has “evaporated,” according to PMI commentary provided by S&P Global's chief economist Chris Williamson, amid “a darkening picture of heightened uncertainty.”

“Uncertainty is the new investor narrative,” Mr Bassuk added. “It's sparking the volatility that we've seen this week.”

“We're anticipating that the uncertainty and the volatility is going to remain at least through the end of this first quarter.”

This week, Mr Trump said he will soon announce new tariffs covering lumber and forest products, in addition to previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals.