In addition to concerns about the job market, investors also paid attention to the new tariffs that the White House implemented. The new tariffs, which range from 10% to 41%, are likely to affect many goods from major trading partners. For example, Canada now has a 35% tariff, up from 25%, and goods that are transshipped will have to pay a 40% duty.
These changes also raised worries about added inflation and slower economic growth. Bank stocks fell sharply on Friday amid fears of lower loan demand. lost over 2%, while Bank of America and Wells Fargo declined more than 3% each.
Analysts noted that valuation concerns and narrowing market breadth contributed to defensive positioning. “Growth concerns are mounting, and traders are rotating out of high-multiple stocks,” said Joseph Cusick of Calamos Investments.
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