Wall Street ends week sharply lower as tech shares drag down indexes
U.S. stocks tumbled Friday, driven by renewed worries over inflation and intensifying trade uncertainty. The Dow Jones Industrial Average plummeted 717 points, or 1.7%, while the S&P 500 fell 1.9%. The Nasdaq Composite suffered the steepest drop, losing 2.6%.
Big tech bore the brunt of the sell-off. Alphabet and Amazon each fell over 3%, while Microsoft and Meta dropped roughly 2%. The losses pushed the S&P 500 and Nasdaq toward their fifth weekly decline in six weeks. For the week, the S&P was down more than 1%, the Nasdaq lost over 2%, and the Dow slipped 0.8%.
Inflation and sentiment data rattle markets
Markets turned lower following the release of the University of Michigan’s final consumer sentiment index for March, which showed the highest long-term inflation expectations since 1993. Meanwhile, February’s core personal consumption expenditures (PCE) index rose 2.8% year-over-year and 0.4% for the month — both above expectations.
Consumer spending rose 0.4% in February, slightly below the 0.5% forecast. “The latest PCE report presented mixed results, with headline figures aligning with expectations, while core numbers reveal a slight but notable increase,” said Dan Siluk, portfolio manager at Janus Henderson. He added that continued inflation could delay the Federal Reserve’s plans to ease interest rates.
Tariff fears weigh on investor sentiment
Investor anxiety has intensified in response to the White House’s aggressive tariff agenda. President Donald Trump announced a 25% tariff on all foreign-made vehicles earlier this week, rattling auto stocks and raising concerns of a broader economic slowdown. Markets are bracing for more announcements on April 2, when Trump is expected to unveil additional tariff measures.
In response, Canada signaled retaliatory tariffs, while the European Union is reportedly exploring concessions to mitigate U.S. trade penalties. The looming threat of reciprocal tariffs is clouding the economic outlook and further souring investor sentiment.
