US stocks turned lower on Friday as investors digested a jump in consumer expectations for inflation and a cooler-than-expected jobs report.

The S&P 500 (^GSPC) moved 0.5% lower, while the tech-heavy Nasdaq Composite (^IXIC) slid 0.8%. The Dow Jones Industrial Average (^DJI) also fell 0.5%, on the heels of a mixed day for stocks on Wall Street.

The markets took a leg lower after a report from Reuters said President Trump told Republican lawmakers he plans to announce reciprocal tariffs on American imports as early as Friday.

The major gauges slid earlier into the red after US consumer sentiment sank to a seven-month low in early February, undershooting forecasts. Inflation expectations jumped amid concerns about President Donald Trump’s tariff threats.

Americans now expect a rate of 4.3% over the next year, a full percentage point higher than last month, the University of Michigan survey found.

The 10-year Treasury (^TNX) yield rose to 4.5% in the wake of the sentiment update and the monthly jobs report.

The US economy added 143,000 jobs in January, missing economist expectations, but still showing signs of resilience in the labor market. Unemployment ticked down to 4.0%, from 4.1% in December.

The jobs report has become more crucial to hopes for another Federal Reserve interest-rate cut. Investors are watching for cracks in the market’s stability, as they eye President Donald Trump’s tariff push and the chances of higher inflation.

Meanwhile, eyes were on Amazon’s (AMZN) earnings after it joined Google (GOOG) and other AI-focused Big Tech companies in disappointing Wall Street with its revenue outlook. Shares in Amazon dropped more than 3% in early trading.

The three major gauges are still just about on track to close the earnings-packed week with small gains, even after unpredictable tariff news from Trump kept traders on their toes..

• LIVE 8 updates
• Today’s higher mortgage rate reality is finally sinking in with potential homebuyers and sellers.
• For months, a plurality of consumers polled by Fannie Mae were confident that mortgage rates would drop in the next year. But the mortgage giant’s latest poll showed a 13-point swing away from that view.
• Just 35% of respondents surveyed by the mortgage giant in January now expect mortgage rates to drop, down from 42% in December and a survey-high 45% in November. Meanwhile, the share of consumers who think rates will rise jumped to 32%, from 25%.
• Housing market economists have warned that mortgage rates might not fall much this year after the Fed lowered its expectations for rate-cutting, and uncertainties linger over how President Donald Trump’s economic agenda could affect inflation and economic growth.
• The average 30-year mortgage rate was 6.89% this week through Wednesday. It’s been hovering around 7% for all of 2025.
• The major averages turned negative after consumer sentiment data fell below expectations for the month of February.
• The Michigan consumer sentiment index dropped to 67.8, coming in below expectations of 71.8. The February preliminary reading was the lowest registered in about 7 months.
• “Year-ahead inflation expectations jumped up from 3.3% last month to 4.3% this month, the highest reading since November 2023 and marking two consecutive months of unusually large increases,” said the survey.
• By 10:15 a.m. ET, the S&P 500 (^GSPC) sank 0.3% and the tech-heavy Nasdaq Composite (^IXIC) sank 0.8%. The Dow Jones Industrial Average (^DJI) also fell 0.2%.
• Meanwhile the 10-year Treasury yield rose to 4.5%.
• Among the Big Tech names, Amazon’s (AMZN) stock sank to session lows, dipping nearly 4% after the e-commerce giant issued disappointing revenue outlook.
• Stocks inched higher on Friday as investors digested a monthly jobs report that showed some resilience in the labor market.
• The S&P 500 (^GSPC) hovered near the flat line, while the tech-heavy Nasdaq Composite (^IXIC) opened slightly higher. The Dow Jones Industrial Average (^DJI) rose 0.1%.
• The US economy added 143,000 jobs in January, less than the 173,000 expected by economists. However, hourly wages ticked higher, and the unemployment rate fell to 4.0% from 4.1%.
• Meanwhile, December’s jobs additions were revised up to 307,000, from an earlier reading of 256,000 — a sign the labor market exited 2024 on a better footing than thought
• On the earnings front, Amazon’s (AMZN) disappointing revenue outlook dragged on shares of the tech giant, which fell more than 2%.
• Yahoo Finance’s Josh Schafer reports:
• The US labor market showed continued signs of resilience in January as the unemployment rate unexpectedly fell and wages grew more than expected.
• Data from the Bureau of Labor Statistics released Friday showed the unemployment rate fell to 4% in January from 4.1% the month prior.
• 143,000 new jobs were created in January, less than the 170,000 expected by economists, and lower than the 307,000 seen in December. December’s monthly job gains were revised higher from a previous reading of 256,000.
• Read more here.
• Stocks in Europe wavered on Friday but were on track for weekly gains after a run of robust earnings reports from Novo Nordisk (NVO, NOVO-B.CO) and others.
• The pan-European Stoxx 600 (^STOXX) index was holding steady, not far off record highs as it eyed its seventh weekly win in a row. In 2025 so far, European stocks have notched their best performance compared with their US counterparts in around 10 years.
• In individual benchmarks, Germany’s DAX (^GDAXI) edged up 0.1%, while the CAC (^FCHI) in Paris traded flat.
• London’s FTSE 100 index (^FTSE) slipped roughly 0.3%, after surging on Thursday on the heels of an interest rate cut by the Bank of England that came with unexpectedly dovish commentary.
• Chinese tech stock trading in Hong Kong was poised to enter a technical bull market after DeepSeek’s artificial intelligence model ignited interest in China’s internet firms. The Hang Seng Tech Index hit gains of 2.5%, taking its year to date rise up to 20%
• Bloomberg reports:
• Read more
• Amazon (AMZN) warned investors about potential capacity limitations in its cloud computing sector, even as it plans to invest around $100 billion this year. The investment will target building data centers, developing proprietary chips, and expanding infrastructure to support artificial intelligence services.
• Bloomberg reports:
• Read more here.