Stocks plunged lower on Friday as fresh economic data sparked a broader market sell off over concerns of a slowing U.S. economy and persistent inflation. The Dow Jones Industrial Average sank over 700 points, while the S&P 500 Index and Nasdaq Composite lost 1.7% and 2.2%, respectively.

Here's how the market settled to close out the week:

S&P 500 Index (SPY  ): -1.71% or -104.39 points to 6,013.13

Dow Jones Industrial Average (DIA  ): -1.69% or -748.63 points to 43,428.02

Nasdaq Composite Index (QQQ  ): -2.20% or -438.36 points to 19,524.01

Losses accelerated towards market close as traders anticipate that the Trump administration could propose more tariffs over the weekend and make other policy changes -- a notable pattern that has begun since President Donald Trump took office a month ago.

Consumer Sentiment declined further in February as Americans grew more pessimistic around inflation, the the University of Michigan's monthly survey showed on Friday. Headline consumer sentiment fell by a more-than-expected 9.8% from January to a reading of 64.7. That level was also 15.9% below the same reading a year ago.

When it comes to inflation outlooks, the one-year expectation rose to 4.3%, marking its highest level since November 2023, with consumers citing concerns about the potential effects of Trump's tariffs. The five-year inflation outlook also rose to 3.5%, its highest since April 1995.

"While sentient fell for both Democrats and Independents, it was unchanged for Republicans, reflecting continued disagreements on the consequences of new economic policies," said Joanne Hsu, directors of the Surveys of Consumers, in a statement.

U.S. Services and Manufacturing Activity also slowed by a more-than-expected pace in February, according to data released from S&P Global on Friday. The firm's manufacuring purchasing managers' index (PMI) came in at 51.6 for the month, while Services PMI fell to 49.7 -- its lowest level in more than two years.

"Optimism about the coming year slumped to its lowest since December 2022, except for last September, when business was unsettled by uncertainty ahead of the Presidential election. The deterioration in February was primarily a reflection of increased uncertainty about the business environment, especially in relation to federal government policies related to domestic spending cuts and tariffs," S&P Global said in a statement.

The Dow and Nasdaq led losses for the week, each falling about 2.5%, while the broader market S&P 500 declined about 1.6% lower.