04:49 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 imports from Canada, Mexico and China.

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%.

"The president will be implementing tomorrow 25% tariffs on Mexico, 25% tariffs on Canada, and a 10% tariff on China for the illegal fentanyl that they have sourced and allowed to distribute into our country, which has killed tens of millions of Americans," Reuters reported Friday, citing White House Press Secretary Karoline Leavitt.

The US 10-year yield rose 3.3 basis points to 4.55%, while the two-year rate added one basis point to 4.21%.

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 held its benchmark lending rate steady following three straight cuts, saying that inflation remained "somewhat elevated."

West Texas Intermediate crude oil rose 1.3% to $73.66 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 that it has decided to suspend its quarterly dividend.

Atlassian ( TEAM ) shares surged nearly 15%, the best performer on the Nasdaq. The company late Thursday issued an upbeat outlook for its fiscal third-quarter revenue after delivering a second-quarter beat.

AbbVie ( ABBV ) posted better-than-expected fourth-quarter 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 0.4% to $2,833.50 per troy ounce, while silver dropped 0.7% to $32.26 per ounce.