US equity indexes fell this week as the Federal Reserve's message on Friday that it can still wait for more clarity on the impact of fiscal policy decisions failed to outweigh a sell-off earlier this week when data signaled economic weakness and trade tariffs increased uncertainty.

* The S&P 500 closed at 5,770.20 on Friday, versus 5,954.50 a week earlier. The Nasdaq Composite stood at 18,196.22 compared with 18,847.28 a week prior. The Dow Jones Industrial Average ended at 42,801.72 end-of-play, versus 43,840.91 a week ago.

* Fed Chair Jerome Powell reminded investors that monetary policy is well-positioned to act as needed. "If the economy remains strong but inflation does not continue to move sustainably toward 2%, we can maintain policy restraint for longer," Powell said. "If the labor market were to weaken unexpectedly or inflation were to fall more quickly than anticipated, we can ease policy accordingly."

* Nonfarm payrolls rose less than forecast in February, and the unemployment rate rose. TD Economics said growth will likely soften over the coming months as federal layoffs continue to rise and ongoing trade policy uncertainty weighs on near-term hiring intentions. Layoff plans in the US increased to 172,017 jobs in February, the highest monthly total since July 2020, driven by government sector cuts, outplacement firm Challenger, Gray & Christmas said.

* The Trump Administration's indecision on tariffs levied on Canada and Mexico unsettled markets after President Donald Trump suspended 25% tariffs on goods covered by an existing free-trade agreement by the three companies until April 2, clouding the outlook for companies' supply costs.

* Morgan Stanley revised US economic growth lower for 2025 and 2026, saying facts have changed. "We now see higher inflation in 2025 with a more pronounced and sooner reacceleration in goods prices. The mix of firm inflation and low unemployment could put the Fed in a bind."