Klarna, a buy now, pay later lender, has filed for an IPO on the U.S. stock market, signaling its recovery after a sharp decline in valuation. The company's CEO has indicated a preference for a U.S. listing due to better visibility, as it faces competition from other tech companies also looking to go public.

U.S. consumers are showing signs of weakness due to tariffs contributing to inflation and recession fears. Major retailers and airlines are adjusting forecasts as demand softens.

On Friday, the stock market recovered some losses, with the Dow Jones rising over 650 points, driven by the absence of new tariff news and optimistic investor sentiment. Nonetheless, the indices still faced their worst weekly performance since March 2023.

Dick's Sporting Goods anticipates a challenging 2025 due to recession fears, despite recently reporting strong holiday sales. Market uncertainties and changing consumer confidence influence their outlook amid rising tariffs and inflation.

Abercrombie & Fitch's shares dropped after the company reported weaker-than-expected sales guidance and anticipated earnings per share that fell short of market estimates for fiscal 2025.