Wall Street ended the week on a sour note as U.S. stock markets took a sharp dive on Friday, March 28, 2025, driven by mounting concerns over President Donald Trump’s escalating tariff policies and fresh inflation data that has reignited fears of stagflation. The Dow Jones Industrial Average dropped 1.7%, the S&P 500 shed nearly 2%, and the Nasdaq Composite nosedived 2.7%, marking one of the steepest single-day declines of the year. The selloff, which intensified in the final hours of trading, erased weekly gains and left investors grappling with uncertainty as the weekend began.
The catalyst for today’s market turmoil came just hours ago when posts on X and breaking news from Reuters highlighted a significant downturn linked to tech heavyweights like Amazon and Microsoft, alongside broader economic worries. At 6:20 PM IST (5:50 AM EST), Reuters reported that Wall Street’s main indexes were hammered by selloffs in these key players, reflecting investor unease over their exposure to global supply chains increasingly threatened by Trump’s trade agenda. Just over an hour later, at 7:40 PM IST (7:10 AM EST), Reuters added fuel to the fire with data showing U.S. inflation ticked higher in February, according to the Commerce Department’s Personal Consumption Expenditures (PCE) price index. The “core” PCE, which strips out volatile food and energy prices, rose to 2.8%, stoking fears that persistent inflation could collide with a slowing economy.
Trump’s recent tariff actions have dominated headlines, with a 25% levy on imported cars and light trucks set to take effect April 3, 2025, and reciprocal tariffs looming against Canada and the EU. Earlier this week, Canadian Prime Minister Mark Carney signaled retaliatory trade measures, while European leaders hinted at targeting U.S. firms like PayPal in response. These developments have amplified public and investor anxiety, with posts on X today reflecting growing pessimism about personal finances and a potentially toxic economic brew.
6 stories we are following today.
1. The markets tanked yesterday on concerns re tariffs and inflation.
The S&P 500 dropped 1.97% and the Nasdaq dropped 2.7%.“The “core” Personal Consumption Expenditures (PCE) Index, which excludes volatile food and energy prices, rose 2.8%…
— Scott Becker (@BKRBusinessMin) March 29, 2025
Analysts warn that the combination of rising prices and aggressive trade policies could tip the U.S. into a “Trumpcession”—a term gaining traction to describe a recession triggered by these unpredictable moves. Consumers are feeling the pinch too, with reports from WITN and ATLNewsFirst today citing declining optimism about future finances amid worsening inflation and a sluggish economy. As the Biden-era economic recovery falters, the public’s attention has zeroed in on how these policies might hike costs for everyday goods, from cars to groceries.
With markets closed until Monday, all eyes are on the Trump administration’s next steps. For now, the mood on Wall Street and Main Street alike is one of unease, as the U.S. braces for what could be a turbulent spring.
