U.S. stocks moved lower on Friday afternoon as investors balanced fresh uncertainty over tariffs with mixed signals about the Federal Reserve’s next policy step. The pullback came after a choppy session in which traders reassessed the outlook for growth, inflation, and interest rates.

The S&P 500 fell 0.6% in afternoon trading, reflecting broad caution across major benchmarks. Market participants appeared to be waiting for clearer guidance on trade policy and any signs that the central bank may keep borrowing costs elevated for longer than expected.

Recent tariff headlines have added another layer of volatility to already sensitive markets. Higher import costs could feed into inflation and complicate the Fed’s effort to bring prices down without slowing the economy too sharply.

With investors still looking for policy clarity, Friday’s decline underscored how quickly sentiment can shift when trade risks and monetary policy concerns move in the same direction. Traders now face another week of parsing economic data and official comments for clues about the path ahead.