Stock Market Today: Trump Tariff Worries Pressure Stocks
Stocks swung lower Friday after the White House confirmed it will impose tariffs on Mexico, Canada and China beginning tomorrow.



Joey Solitro
Stocks opened higher Friday thanks to a just-fine inflation report and a round of not-so-bad corporate earnings. But markets turned after the White House confirmed that it will levy tariffs against Mexico, Canada and China starting tomorrow, February 1.
This morning's release of the December Personal Consumption Expenditures Price Index (PCE) was generally well-received by investors. According to the Bureau of Labor Statistics, headline PCE was up 0.3% month over month and 2.6% year over year. This was faster than the respective increases of 0.2% and 2.4% seen in November.
Core PCE, which excludes volatile food and energy costs, rose 0.2% month over month, quicker than 0.1% in November. Year over year, core PCE was unchanged at 2.8%.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The report also showed that personal income rose 0.4% in December, while consumer spending was up 0.7%.
"Some of that consumption buoyancy is thanks to robust capital markets and a declining savings rate, while another contributor stems from powerful wage growth," says José Torres, senior economist at Interactive Brokers. "Indeed, a separate report from a distinct federal agency known as the Bureau of Labor Statistics' Employment Cost Index (ECI) depicted accelerating compensation expenses on behalf of employers."
Specifically, ECI was up 0.9% from October to December, slightly faster than the 0.8% gain in Q3. Year over year, the Employment Cost Index was 3.8% higher in Q4, slower than the 3.9% increase from the third quarter.
"Overall, today's report was good news for the Federal Reserve as it suggests that wage inflation is softening, a sign that inflation pressures are easing," says Eugenio Alemán, chief economist at Raymond James."
Blue chip stocks move on earnings
In single-stock news, Apple (AAPL) stock opened more than 3% higher after the tech giant beat top- and bottom-line expectations for its fiscal first quarter. However, shares trended lower throughout the session, ending down 0.7% on an iPhone revenue miss and slumping China sales.
Chevron (CVX) was the worst Dow Jones stock Friday, sinking 4.5% as the oil major's fourth-quarter earnings miss offset a top-line beat. CVX also maintained its status as one of Wall Street's best dividend stocks for dependable dividend growth, hiking its quarterly payout this time by 4.9%.
Elsewhere, Visa (V) stock ended down 0.3% after the payments company's beat-and-raise quarter. And Intel (INTC) stock fell 2.9% as the chipmaker's weak first-quarter guidance offset higher-than-expected fourth-quarter results.
Walgreens sinks after suspending dividend
But one of the most buzzworthy stories occurred outside of the earnings calendar. Notably, Walgreens Boots Alliance (WBA) said it is suspending its quarterly dividend in order to conserve cash, sending the former Dow stock down 10.3% on the day.
"This change in capital allocation is aimed at strengthening WBA's balance sheet by reducing debt over time and improving free cash flow, as the company works toward achieving a retail pharmacy-led turnaround underpinned by a sustainable economic model," Walgreens said in a statement.
UBS Global Research analyst Kevin Caliendo said the dividend cut was "widely anticipated by investors" given Walgreens' fundamental struggles. He adds that by suspending its dividend, Walgreens is indicating that a potential buyout or large asset sale will not occur in the near term.
As for the main indexes, the Dow Jones Industrial Average closed down 0.8% at 44,544, the S&P 500 shed 0.5% to 6,040, and the Nasdaq Composite gave back 0.3% to 19,627.
Related content
- Stocks With the Highest Dividend Yields in the S&P 500
- What to Consider Before You Invest in Alternatives
- How AI Will Impact Our Lives in 2025 and Beyond
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
- Joey SolitroContributor
-
April RMD? Five Tax Strategies to Manage Your 2025 Income
Taxable Income The April 1, 2025, deadline for required minimum distributions (RMDs) is fast approaching for retirees who turned 73 in 2024.
By Kelley R. Taylor Last updated
-
Rising AI Demand Stokes Undersea Investments
The Kiplinger Letter As demand soars for AI, there’s a need to transport huge amounts of data across oceans. Tech giants have big plans for new submarine cables, including the longest ever.
By John Miley Published
-
How Much Does Being Rich Matter in Retirement?
After a certain point, having more money in retirement won't make you any happier, new research shows. Instead, physical health, a sense of purpose, and a minimal amount of non-mortgage debt are more relevant.
By Christy Bieber Published
-
The Three Biggest Fears Keeping Retirees Up at Night
Here are the steps you can take to put those fears to rest and retire with confidence so you can relax and enjoy the life you've planned.
By Pam Krueger Published
-
What Can a Donor-Advised Fund Do for You? (A Lot)
DAFs and private foundations go about helping charities (and those who donate) in different ways. Each comes with its own benefits and restrictions to navigate.
By Julia Chu Published
-
Estate Planning When You Have International Assets
Estate planning gets tricky when you have assets and/or beneficiaries outside the U.S. To avoid costly inheritance mistakes, it pays to understand the basics.
By Kelsey M. Simasko, Esq. Published
-
Microsoft Stock: Innovation Spurs Its 100,000% Return
Microsoft's ability to recognize the "next big thing" has allowed sales – and its share price – to grow exponentially over the years.
By Louis Navellier Published
-
Three Essential Estate Planning Steps to Protect Your Nest Egg
After dedicating years to building your wealth and securing your future, make sure your assets are protected and your loved ones are provided for in the future.
By Nicole Farbo, CFP® Published
-
Is Chasing the American Dream Ruining Your Financial Life?
Too many people focus on visible affluence as a marker of success. Here's how to avoid succumbing to the pressure and driving yourself into debt.
By Anthony Martin Published
-
Stock Market Today: Dow Sinks 715 Points as Inflation Unrest Grows
Inflation worries are showing up in both hard and soft data.
By Karee Venema Published