04:41 PM EST, 02/28/2025 (MT Newswires) -- The Standard & Poor's 500 index shed 1% this week, resulting in a February drop of 1.4% that erased much of the benchmark's January gain.

The S&P 500 ended Friday's session at 5,954.50. The index, which fell in three of February's four weeks, is now up 1.2% in 2025.

Data released Friday showed consumer spending unexpectedly declined last month even as the Federal Reserve's preferred inflation metric decelerated on an annual basis.

Concerns about the impacts of tariffs imposed or threatened by US President Donald Trump have weighed on the market. Trump said Thursday that tariffs scheduled for March 4 will proceed as planned, including an additional 10% levy on Chinese items. China said Friday it would counter any additional tariffs imposed by the US.

A tense exchange on Friday between Trump and Ukraine President Volodymyr Zelenskyy added to investor worries.

The technology sector had the largest percentage drop of the week, falling 4%, followed by a 2.6% decline in communication services and a 2.1% slip in consumer discretionary. Utilities also fell.

Among the technology sectors hardest-hit stocks, shares of NetApp ( NTAP ) tumbled 20%. The company lowered its fiscal 2025 guidance while reporting fiscal Q3 adjusted earnings per share that merely matched the Street view while revenue came in slightly below expectations.

In communication services, Alphabet's (GOOGL) shares fell 5.2% as Chegg (CHGG) said it has filed a complaint against the company and its Google unit over alleged unfair competition, saying that Google's AI Overviews feature has materially impacted traffic and revenue.

On the upside, financials rose 2.8%, followed by a 2.1% gain in real estate and a 1.7% climb in health care. Consumer staples, industrials, materials and energy also edged higher.

Erie Indemnity ( ERIE ) had the largest percentage increase in the financial sector, climbing 12%, as the company reported year-over-year gains in Q4 earnings per share and revenue.

Next week, Broadcom (AVGO), Costco Wholesale (COST) and CrowdStrike Holdings (CRWD) are among the companies expected to release quarterly results.

In economic data, investors will be focused on February jobs numbers, with ADP's employment report expected on Wednesday and the government's nonfarm payrolls and unemployment rate due on Friday.