US stocks fell on Friday as investors reacted to the possible threat of more tariffs while digesting a jump in consumer expectations for inflation, and the monthly jobs report. The markets took a leg lower after a report from Reuters said President Trump told Republican lawmakers that he plans to announce reciprocal tariffs on American imports as early as Friday.

U.S. stock indexes are drifting lower on Friday after a discouraging report suggested U.S. consumers are bracing for higher inflation over the next year. The S&P 500 was 0.3% lower in morning trading,

University of Michigan consumer survey Friday found consumer sentiment fell about 5% on fears inflation will rise to 4.3% under Trump administration tariffs with major U.S. trading partners.