Wall Street stocks plunged on Friday, with major technology companies like Amazon, Microsoft, and Apple leading the selloff after U.S. economic data raised concerns about weak growth and persistent inflation. The selloff followed troubling reports on consumer spending and inflation, while the Trump administration’s ongoing tariff policies added to investor unease.
The U.S. consumer spending data for February showed a weaker-than-expected rebound, while a closely watched measure of core inflation surged to its highest level in over a year. Meanwhile, a University of Michigan survey revealed that Americans’ 12-month inflation expectations spiked to the highest levels in nearly two-and-a-half years, fueling fears that inflation could remain elevated for an extended period.
The combination of these factors raised worries that President Donald Trump’s tariffs, which have been ramped up since his inauguration in January, could further drive inflation. As a result, the Federal Reserve may delay or reconsider any plans to cut interest rates, which had previously been expected to help stimulate economic growth.
Tech stocks were hit particularly hard, with Amazon tumbling 4.3%, Microsoft losing 3%, and Apple dropping 2.7%. The broader market followed suit, with the S&P 500 falling 1.97% to end the day at 5,580.94 points. The Nasdaq Composite dropped 2.70%, closing at 17,322.99 points, while the Dow Jones Industrial Average closed down 1.69% at 41,583.90 points.
Investor caution was widespread across sectors, with 10 of the 11 S&P 500 sector indexes posting losses. The communication services sector led the decline, shedding 3.81%, while consumer discretionary stocks followed with a 3.27% drop.
The U.S. bond market was also affected, with interest rate futures indicating a 76% likelihood that the Federal Reserve will cut interest rates by 25 basis points at its June meeting, according to CME FedWatch.
For the week, the S&P 500 lost 1.5%, the Nasdaq dropped 2.6%, and the Dow retreated by about 1%. This marked a sharp reversal after the market’s earlier gains in 2025.
The ongoing uncertainty over U.S. tariffs, particularly Trump’s planned 25% tariff on auto imports set to take effect next week, continues to weigh heavily on markets. Tariffs on automotive goods have hurt auto stocks, with General Motors falling 1.1% and Ford losing 1.8%.
One notable casualty was Lululemon Athletica, which saw its shares plummet 14% after the company lowered its annual forecast, citing the unpredictable effects of tariffs on its business.
On the other hand, some mining stocks saw gains amid concerns over the global trade war. Shares of Harmony Gold and Gold Fields rose 9.5% and 4.5%, respectively, due to higher gold prices, which tend to benefit from trade tensions and inflation concerns.
The broader economic outlook remains uncertain, with market analysts expecting this volatile period to continue. The S&P 500 is now on track for its first quarterly decline in six quarters, while the Nasdaq is poised to post its deepest quarterly drop since 2022. UBS Global Wealth Management recently lowered its year-end target for the S&P 500 to 6,400 from 6,600, reflecting concerns about the ongoing tariff disputes and economic slowdown.
Amid the turbulence, investors continue to worry about the unpredictability of future economic policies. “The problem is we don’t know the rules, and businesses really struggle with that,” said Bob Doll, CEO of Crossmark Investments. “Part of the economic weakness we’re experiencing is a result of businesses and individuals being uncertain about what tomorrow might bring.”
With volatility on the rise and market uncertainty growing, Wall Street faces a challenging road ahead as the effects of tariffs, inflation, and global tensions continue to affect investor sentiment.
