Stock market today: Wall Street slumps almost 1% as worries worsen about inflation and tariffs 

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NEW YORK (AP) — U.S. stocks slumped as worries flared again on Wall Street about tariffs and inflation. The S&P 500 fell 0.9% Friday and wiped out what had been a modest gain for the week. The Dow Jones Industrial Average sank 1%, and a sharp fall for Amazon after its latest profit report dragged the Nasdaq composite to a market-leading loss of 1.4%. Treasury yields rose after a preliminary report suggested U.S. consumers’ expectations for inflation are jumping and the latest update on the U.S. job market came in mixed. President Donald Trump also said an announcement on tariffs is likely early next week.THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.NEW YORK (AP) — U.S. stocks are slumping Friday amid worries about higher inflation and tariffs, while a closely watched report gave a mixed picture of the U.S. job market.
The S&P 500 was down 0.9% and on track to wipe out what had been a modest gain for the week, with an hour remaining in trading, and the Dow Jones Industrial Average was down 440 points, or 1%. A sharp drop for Amazon following its latest profit report helped drag the Nasdaq composite to a market-leading loss of 1.4%.Treasury yields also climbed in the bond market after a discouraging report on Friday morning suggested sentiment is unexpectedly souring among U.S. consumers. The preliminary report from the University of Michigan said U.S. consumers are expecting inflation in the year ahead to hit 4.3%, the highest such forecast since 2023.That’s a full percentage point above what they were expecting a month earlier, and it’s the second straight increase of an unusual amount. Economists pointed to the possibility of U.S. tariffs on a wide range of imported products, which President Donald Trump has proposed and which could ultimately push up prices for U.S. consumers.Trump said on Friday that he’s likely to have an announcement on Monday or Tuesday on “reciprocal tariffs, where a country pays so much or charges us so much, and we do the same.”The consumer-sentiment data followed a mixed report on the U.S. job market. It showed hiring last month was less than half of December’s rate, but it also included encouraging nuggets for workers: The unemployment rate eased, and workers saw bigger gains in average wages than economists expected.All the data taken together could keep the Federal Reserve on hold when it comes to interest rates. The Fed began cutting its main interest rate in September in order to relax the pressure on the economy and job market, but it warned at the end of the year that it may cut fewer times in 2025 than it earlier expected given worries about inflation staying stubbornly high.Interest rates are one of the things Wall Street cares most about because lower rates can lead to higher prices for stocks and other investments. The downside is they can also give inflation more fuel.For Scott Wren, senior global market strat