Stocks Tumble After Reports Show Worries on US Policies

US stocks fell sharply Friday after reports showed that worries among consumers and businesses about President Trump's policies may be hitting the economy.

• The Dow fell 748.63 points, or 1.7%, to 43,428.02.
• The S&P 500 fell 104.39 points, or 1.7%, to 6,013.13, its worst day in two months.
• The Nasdaq fell 438.36 points, or 2.2%, to 19,524.01.

The losses accelerated through the day following several weaker-than-expected reports on the economy, per the AP. One suggested that US business activity is close to stalling, with growth slowing to a 17-month low. The preliminary report from S&P Global said activity unexpectedly shrank for services businesses, and many in the survey reported slumping optimism because of worries about Washington. "Companies report widespread concerns about the impact of federal government policies, ranging from spending cuts to tariffs and geopolitical developments," said Chris Williamson of S&P Global Market Intelligence. "Sales are reportedly being hit by the uncertainty caused by the changing political landscape, and prices are rising amid tariff-related price hikes from suppliers."

Stocks of the smallest companies, whose profits can be more closely tied to the strength of the economy than big multinational rivals, fell more than the rest of the market. The Russell 2000 index of small stocks dropped a market-leading 2.9%. Among big companies of the S&P 500 index, three out of every four stocks fell. Everything from Big Tech stocks that have been bid up amid the artificial intelligence frenzy to airlines to metals companies dropped. Nvidia sank 4.1%. United Airlines lost 6.4%, and Newmont Mining fell 5.7%. Akamai Technologies had the sharpest drop in the S&P 500, though the cybersecurity and cloud computing company reported stronger profit for the latest quarter than analysts expected. It lost a fifth of its value and fell 21.7% as investors focused instead on its forecasts for revenue and other financial measures, which fell short of analysts' expectations.

(More Wall Street stories.)