04:29 PM EST, 01/31/2025 (MT Newswires) -- US benchmark equity indexes closed lower Friday amid reports that President Donald Trump is set to implement tariffs on Canadian and Mexican imports, as well as Chinese goods.

The Dow Jones Industrial Average dropped 0.8% to 44,544.7, while the S&P 500 fell 0.5% to 6,040.5. The Nasdaq Composite lost 0.3% to 19,627.4. Energy saw the steepest decline among sectors, while communication services and consumer discretionary were the only gainers.

For January, the Dow jumped 4.7%, while the S&P 500 increased 2.7%. The Nasdaq advanced 1.6%.

Tomorrow, Trump be implement 25% tariffs on Mexico, 25% tariffs on Canada, and a 10% tariff on China for the illegal fentanyl distributed in the US, Reuters reported Friday, citing White House Press Secretary Karoline Leavitt.

The US 10-year yield rose 2.9 basis points to 4.54%, while the two-year rate was little changed at 4.20%.

In economic news, official data showed that US consumer spending growth accelerated at the end of 2024, while the Federal Reserve's preferred inflation gauge held steady at the annual level.

"Despite the tamer price and wage figures, robust consumer spending and uncertain trade policies will likely keep the Fed sidelined in the months ahead," BMO Capital Markets said in a note.

Separately, Fed Governor Michelle Bowman said that policymakers should take a "cautious and gradual" approach to adjusting monetary policy amid upside risks to inflation.

"In light of the ongoing strength in the economy and with equity prices substantially higher than a year ago, it seems unlikely that the overall level of interest rates and borrowing costs are exerting meaningful restraint," Bowman said.

On Wednesday, the Federal Open Market Committee decided to hold its benchmark lending rate steady following three straight cuts, saying that inflation remained "somewhat elevated."

West Texas Intermediate crude oil rose 1.1% to $73.51 a barrel Friday.

In company news, Deckers Outdoor ( DECK ) shares sank nearly 21%, the worst performer on the S&P 500. Late Thursday, the company's updated fiscal 2025 sales guidance fell short of Wall Street's views.

Walgreens Boots Alliance ( WBA ) saw the second-steepest drop on the S&P 500 Friday, down 10%. The drugstore chain said late Thursday it has decided to suspend its quarterly dividend.

Atlassian ( TEAM ) shares surged nearly 15%, the best performer on the Nasdaq, a day after issuing an upbeat outlook for its fiscal Q3 revenue, after delivering a Q2 beat.

AbbVie ( ABBV ) posted better-than-expected Q4 results Friday amid robust sales of Skyrizi and Rinvoq, prompting the drugmaker to lift its long-term combined revenue outlook for the two immunology drugs. It shares increased 4.7%, among the top gainers on the S&P 500.

Gold fell 0.5% to $2,831 per troy ounce, while silver dropped 0.8% to $32.25 per ounce.