Stocks tumble as the Dow plunges 700 points amid growing concerns over the U.S. economy.
Market Turmoil: Dow Sinks Nearly 700 Points as Economic Fears Mount
Stocks tumbled on Friday as fresh U.S. economic data rattled investors, sparking fears about inflation and slowing consumer confidence. The Dow Jones Industrial Average plunged approximately 687 points, or 1.5%, marking a two-day drop of more than 2%. The selloff extended across broader markets, with the S&P 500 falling 1.4% and the Nasdaq Composite sliding 1.6%.
One of the biggest drags on the Dow was UnitedHealth, which plunged 7% following a sources report that the company is under investigation by the Justice Department. The sharp decline put the healthcare giant on track for its worst single-day performance since March 2020.
Adding to investor anxiety, the University of Michigan’s consumer sentiment index fell to 64.7 in January, a steep 10% decline and worse than economists had anticipated. The report revealed heightened inflation concerns, with the five-year inflation outlook climbing to 3.5%—the highest level since 1995.
Fears of persistent inflation and potential Federal Reserve policy responses have driven investors toward safer assets, with a noticeable shift in sentiment across financial markets.
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