Wall Street ends sharply lower on mounting concerns over economy, tariffs

U.S. stocks tumbled on Friday, extending their selloff in the wake of dour economic reports and closing the book on a holiday-shortened week fraught with new tariff threats and worries of softening consumer demand.

All three major U.S. stock indexes moved decisively lower on the heels of the data, and continued their slide into afternoon trading.

The S&P 500 suffered its largest single-day percentage drop since December 18, as did the small cap Russell 2000.

For the week, all three indexes lost ground, with the Dow registering its steepest Friday-to-Friday plunge since mid-October.

"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 leap-frogged AI and technology as the primary drivers of market direction."

Economic data showed U.S. 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, opens new tab disappointing guidance on Thursday, which sparked fears of dampening consumer demand.

U.S. 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."