Wall Street Declines as Market Faces Fifth Consecutive Weekly Loss

Stock markets in the US fell on Friday morning, putting Wall Street on course for its fifth straight week of losses.

The S&P 500 dropped 0.8%, while the Dow Jones Industrial Average declined by 346 points, or 0.8%. The tech-heavy Nasdaq Composite also fell 1% as investor uncertainty over the US economy continued to weigh on sentiment.

The decline in stock prices reflects ongoing concerns about economic conditions and the impact of trade policies. A trade dispute between the US and key global partners has raised fears of worsening inflation, potentially affecting both businesses and consumers.

Nike shares fell sharply, dropping 6.5%, after the company projected a steep decline in revenue. The sportswear giant cited geopolitical uncertainties, new tariffs introduced by the Trump administration, and weakening consumer confidence as factors affecting its financial outlook. Meanwhile, FedEx tumbled 8% in premarket trading after lowering its per-share profit forecast and warning of stagnant revenue growth.

In the bond market, Treasury yields declined as investors sought safer assets amid market volatility. Meanwhile, central banks worldwide, including the Federal Reserve, Bank of Japan, and Bank of England, opted to keep interest rates unchanged. Policymakers have expressed caution due to global economic uncertainty, particularly in light of the ongoing trade dispute.

The negative sentiment extended to global markets, with European stocks also slipping. Germany’s DAX and France’s CAC 40 both lost 0.7%, while Britain’s FTSE 100 dropped 0.5% after the Bank of England’s decision to hold interest rates steady.

In Asia, stock markets ended the week mixed. Hong Kong’s Hang Seng Index saw a significant drop of 2.2%, with losses driven by declines in healthcare and consumer cyclical stocks. The Shanghai Composite Index lost 1.3%, while Japan’s Nikkei 225 edged down 0.2% after reopening from a holiday.

Investor confidence remains weak, with recent surveys showing increased bearish sentiment. A poll by the American Association of Individual Investors indicated that nearly three-quarters of respondents believe a recession is either highly likely or more probable than not in the coming months.

Despite the recent downturn, there were some positive developments. Johnson & Johnson announced plans to invest over $55 billion in US manufacturing over the next four years. Additionally, US home sales rose 4.2% in February, exceeding expectations as more inventory became available.

Reuters, CNBC, and the Associated Press contributed to this report.