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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 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 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 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 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.

Health care stocks dropped late Friday afternoon with the NYSE Health Care Index down 0.3% and the Health Care Select Sector SPDR Fund (XLV) falling 0.4%.

The iShares Biotechnology ETF (IBB) eased 0.2%.

In corporate news, Metsera M shares jumped 47% in their trading debut after the company priced its IPO of 15.3 million shares at $18 apiece.

AbbVie reported better-than-expected Q4 results amid robust sales of Skyrizi and Rinvoq, prompting the drugmaker to lift its long-term combined revenue outlook for the two immunology drugs. The shares gained 4.7%.

Walgreens Boots Alliance shares fell 10%. The company said Thursday its board suspended quarterly dividend payments while management refines its capital allocation policy to be consistent with a long-term turnaround strategy.

AstraZeneca canceled a plan to invest 450 million pounds ($558.3 million) in a UK vaccine plant in Liverpool. The shares fell 0.7%.

Walgreens Boots Alliance's shares were sliding intraday Friday following the company's decision to suspend its dividend, though RBC Capital Markets sees the move potentially accelerating the drugstore chain's turnaround plan.

Walgreens said late Thursday that the decision comes as it continues to assess its capital allocation policy. "The company's cash needs over the next several years, including with respect to litigation and debt refinancing, were important considerations as part of the decision to suspend the dividend," Walgreens said in a statement.

Its shares were down 10% in Friday late-afternoon trade.

The company said it aims to paring debt and improve free cash flow as it works toward achieving "a retail pharmacy-led turnaround underpinned by a sustainable economic model."

Walgreens continues to "evaluate the appropriateness and size" of its dividend, Chief Financial Officer Manmohan Mahajan said on an earnings conference call earlier this month, according to a FactSet transcript.

In the light of Mahajan's remarks, the company's decision to suspend its dividend is not surprising, RBC analyst Ben Hendrix said in a note e-mailed Friday. The move is expected to put Walgreens in a better financial position to execute its turnaround plan in a more timely manner and save about $865 million annually, according to the note.

Separately, Truist Securities on Friday lowered its price target on the Walgreens stock to $12 from $13 while maintaining its hold rating.

Toward the end of 2024, The Wall Street Journal reported that the drug-store operator was in discussions to sell itself to private-equity firm Sycamore Partners.

"Our priority for fiscal 2025 is to stabilize our core performance while we make progress on the longer term strategic and operational turnaround," Mahajan said on the conference call to discuss fiscal first-quarter results.

Health care stocks were higher Friday afternoon, with the NYSE Health Care Index adding 0.1% and the Health Care Select Sector SPDR Fund (XLV) up 0.2%.

The iShares Biotechnology ETF (IBB) rose 0.2%.

In corporate news, AbbVie reported better-than-expected Q4 results amid robust sales of Skyrizi and Rinvoq, prompting the drugmaker to lift its long-term combined revenue outlook for the two immunology drugs. Its shares popped 5.4%.

Walgreens Boots Alliance shares fell 7.8%. The company said Thursday its board has suspended quarterly dividend payments while management refines its capital allocation policy to be consistent with a long-term turnaround strategy.

AstraZeneca has cancelled a plan to invest 450 million pounds ($558.3 million) in a UK vaccine plant in Liverpool. Its shares were down 0.4%.