U.S. stocks fell on Friday as investors grappled with ongoing tariff uncertainty. Key inflation data also weighed on the market. The Dow Jones Industrial Average lost 526 points, or 1.1%. The S&P 500 dropped 1.3%, while the Nasdaq Composite fell 2.2%.
Shares of technology giants took a hit, dragging down the broader market. Google and Amazon lost more than 3% each. Microsoft and Meta each declined by about 2%.
The drop followed a report on March’s consumer sentiment. The report slightly missed expectations. Inflation expectations reached multidecade highs. On top of that, February’s core personal consumption expenditures (PCE) price index came out higher than expected. It rose 2.8%, compared to a forecasted 2.7%. The PCE index also showed a 0.4% month-over-month increase. This raised concerns about persistent inflation in the economy.
Consumer spending showed a 0.4% increase, below the 0.5% forecast. This came from fresh data released by the Bureau of Economic Analysis.
“The latest PCE report presented mixed results,” said Dan Siluk, a portfolio manager at Janus Henderson. “Core inflation remains above the Federal Reserve’s target. This suggests expectations for a shift in monetary policy may need recalibration,” Siluk continued. “This could affect the timing of interest rate adjustments.”
Investors are also watching President Trump’s tariff announcements. The U.S. president announced a 25% tariff on cars not made in the U.S. This move hurt auto stocks and raised fears of an economic slowdown.
Bloomberg reported that the European Union is considering concessions to Trump. The aim is to reduce the impact of reciprocal tariffs, set to increase after April 2. Trump is expected to announce more tariff plans that could affect international trade.
Wall Street is now headed toward its fifth weekly decline in six weeks. The Nasdaq is down 1.9% for the week. The S&P 500 has lost 1.1%, while the 30-stock Dow is down 0.5%.
This news comes as investors seek clarity on both inflation trends and trade policies. With these ongoing issues, market volatility is likely to continue in the coming weeks. The outlook for U.S. stocks remains uncertain, with investors staying cautious as they monitor inflation data and tariff developments.
