Stocks fell Friday as investors shook off early session gains and staged a broad market sell off on news of incoming tariffs on major U.S. trading partners. The Dow Jones Industrial Average sunk over 300 points, while the S&P 500 Index and Nasdaq Composite lost 0.5% and 0.3%, respectively.

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

S&P 500 Index (SPY  ): -0.50% or -30.64 points to 6,040.53

Dow Jones Industrial Average (DIA  ): -0.75% or -337.47 points to 44,544.66

Nasdaq Composite Index (QQQ  ): -0.28% or -54.31 points to 19,627.44

Investors initially turned their attention to the Commerce Department's latest personal consumption expenditures (PCE) price index reading released Friday, which showed inflation increasing at a modest rate in December.

Headline inflation rose 2.6% annually last month, coming in-line with estimates and rising 0.2 percentage point higher from November's print. Core PCE, which excludes food and energy prices and is one the the Federal Reserve's key inflation gauges, also came matched expectations with a reading of 2.8%. On a monthly basis, headline PCE and core PCE rose 0.3% and 0.2%, respectively.

In a Friday speech, Fed Governor Michelle Bowman was optimistic that inflation was going to continue to ease throughout 2025, but cautioned that the central bank should hold interest rates until there are more deflationary signs.

"These is still more work to be done to bring inflation close to our 2 percent goal. I would like to see progress in lowering inflation resume before we make further adjustments to the target range," Bowman said in remarks in Portsmouth, New Hampshire. "I do expect that inflation will begin to decline again and that by year-end it will be lower than where it now stands.

Later in the afternoon, the broader market slid lower on news Trump's proposed 25% tariffs on goods produced in Canada and Mexico and 10% duty on China will be available for public review on Saturday. Economists warn that the tariffs, which impact about $1.6 trillion in annual business between the countries, could increase inflationary pressures on the U.S. economy.

Despite the volatile session -- which led to the S&P 500 being the sole major index to end the week with modest gains -- all three major averages closed out January in the green. The Dow outperformed its peers, rising 4.7%, while the S&P and Nasdaq added 2.7% and 4.7%, respectively.

On the Earnings Front:

Apple (AAPL  ) shares rose Friday after the tech giant gave a rosy forward guidance after delivering disappointing iPhone sales numbers in its fiscal first quarter. While the company saw China sales decline 11.1% during the quarter to $18.51 billion, Apple said it expects growth in its fiscal second quarter of "low to mid single digits," on an annual basis and "low double digits" for its Services division.

"If you look at the negative 11, half of the decline is due to a change in channel inventory, and so the operational performance is better," CEO Tim Cook told CNBC in a post-earnings interview, highlighting that China's performance was due in-part to Apple Intelligence not launching in the region.

"During the December quarter, we saw that in markets where we had rolled out Apple Intelligence, that the year-over-year performance on the iPhone 16 family was stronger than those markets where we had not rolled out Apple Intelligence," Cook noted.