Fri Jan 24 23:40:00 UTC 2025: ## Wall Street Jitters Over Trump’s Tariff Talk and Fed Meeting Loom

**New York, NY** – Uncertainty surrounding President Trump’s potential tariff policies sent ripples through Wall Street on Friday, contributing to a decline in major stock indexes despite the markets’ overall weekly gains. The Dow Jones Industrial Average fell 140.82 points (0.3%) to close at 44,424.25, the S&P 500 dropped 17.47 points (0.3%) to 6,101.24, and the Nasdaq Composite lost 99.38 points (0.5%) to finish at 19,954.30. Despite Friday’s losses, all three indexes still posted back-to-back weekly gains, fueled by Trump’s return to the White House earlier in the week.

The technology sector, a significant driver of market performance, experienced a sharp downturn on Friday, with the S&P 500’s information technology sector falling 1.3%. Big Tech stocks, including Nvidia (-3.5%), underperformed, weighing on the overall market. This contrasts with gains seen in other sectors and some bond ETFs, where the iShares Core U.S. Aggregate Bond ETF and the Vanguard Long-term Treasury ETF saw positive performance as Treasury yields declined.

Adding to investor apprehension is the upcoming Federal Reserve monetary policy meeting next week. President Trump’s recent comments suggesting he knows more about interest rates than the Fed are adding to concerns about the central bank’s independence and potentially influencing the Fed’s decision on interest rates. Analysts, like Chris Diaz of Brown Advisory, anticipate questions regarding the Fed’s independence at the upcoming press briefing.

The uncertainty surrounding tariffs and interest rates also impacted gold prices, which hit a three-week high, driven by investor demand for safe haven assets. Gold prices closed at $2,778.90 an ounce, boosted by 0.5%. The Cboe Volatility Index (VIX), a measure of market fear, fell, indicating a potential decline in investor anxiety.

Despite the Friday dip, the overall market sentiment remains mixed. While investors are concerned about the potential impact of Trump’s policy proposals, the initial week following his return to office has seen positive market responses overall, suggesting market resilience for now. However, the looming Fed meeting and the continuing uncertainty around Trump’s economic agenda will likely keep volatility in play next week.

Read More