Market Setback as Fresh Tariffs Loom

U.S. stocks declined after President Trump announced new tariffs on Canadian, Mexican, and Chinese imports. Investors feared retaliatory measures. Despite some quarterly gains, the market outlook remains uncertain, compounded by expectations of steady Federal Reserve interest rates amid moderate inflation reports.

U.S. stocks closed lower on Friday, reacting to President Donald Trump's announcement of impending tariffs on imports from Canada, Mexico, and China. The tariffs, set at 25% for Canadian and Mexican goods and 10% for Chinese goods, will be enforced starting Saturday, adding to existing economic uncertainties.

Rick Meckler of Cherry Lane Investments mentioned the anticipation of market volatility, not just due to the tariffs themselves but potential retaliatory actions. The week also saw substantial quarterly results, with Apple shares dipping despite optimistic remarks about its AI initiatives from executives.

Energy stocks were among the hardest hit, with Chevron and Exxon Mobil reporting disappointing earnings. Meanwhile, the Federal Reserve's decision to maintain current interest rates was backed by signs of consumer spending strength and manageable inflation. The broader market remains on edge amid these developments.

(With inputs from agencies.)