U.S. stocks experienced a significant downturn on Friday as concerns over President Donald Trump’s policies sent shockwaves through the market. The Dow Jones Industrial Average plummeted 748 points, marking its largest single-day drop in recent months. Similarly, the S&P 500 and Nasdaq composite fell sharply by 1.7% and 2.2%, respectively.

The sell-off intensified throughout the day following a series of disappointing economic indicators. Reports indicated a near-stall in U.S. business activity, with growth hitting a 17-month low. S&P Global highlighted shrinking activity among services businesses, attributing it to mounting concerns over federal policies, including spending cuts and tariffs.

Chris Williamson, chief business economist at S&P Global Market Intelligence, underscored widespread apprehension among companies regarding the uncertain political landscape. Many businesses reported declining sales amidst tariff-related price hikes by suppliers, contributing to a climate of economic uncertainty.

Consumer sentiment also took a hit, with expectations of higher inflation looming large. A survey by the University of Michigan revealed a sharp increase in expected prices, driven by fears of tariff-induced price hikes on imports. This sentiment shift was particularly notable among political independents and Democrats.

The housing market added to economic concerns, as sales of previously owned homes fell short of expectations due to high mortgage rates and soaring home prices. Despite these setbacks, the broader U.S. stock market had been resilient earlier in the year, hovering near all-time highs before Friday’s downturn.

The market breadth reflected widespread losses across various sectors. Small-cap stocks, sensitive to domestic economic conditions, saw the Russell 2000 index tumble by 2.9%. Major companies within the S&P 500, including tech giants and airlines, also recorded significant declin

es. Nvidia, United Airlines, and Newmont Mining were among the notable losers.

Amidst the sea of red, some sectors managed to buck the trend. Celsius Holdings, known for its energy drinks, surged 27.8% following a strategic acquisition. The company’s upbeat earnings report provided a rare bright spot amidst the market turmoil.

Looking ahead, investors remain cautious as they navigate ongoing trade tensions and policy uncertainties. The Federal Reserve’s stance on interest rates, influenced by inflationary pressures and economic data, continues to be a pivotal factor influencing market sentiment.

In global markets, European indexes were mixed, while Hong Kong’s Hang Seng index surged 4%, buoyed by strong earnings from Alibaba and optimism surrounding its artificial-intelligence initiatives.