U.S. stocks fell sharply Friday, with the Dow Jones Industrial Average dropping by more than 650 points.
The decline sent the Dow below the psychologically important level of 26,000, which it had just broken through for the first time two-and-a-half weeks ago. The Dow’s decline of 2.5 percent was mirrored in other major indices. The S&P 500 fell 2.2 percent, and the Nasdaq Composite declined 2 percent.
Friday capped an already tough stretch for the markets, with the Dow logging its worst week in two years.
The market has surged in the “Trump rally” as analysts priced in projected higher earnings from the prospect of corporation-friendly tax cuts, regulatory rollbacks and infrastructure investment under the new administration.
But investors sold off Friday on fears that a stronger-than-expected jobs report would spur the Federal Reserve to raise interest rates more than expected. Higher interest rates for …