Market Overview

U.S. stocks experienced a notable decline on Friday, with investors grappling with tariff uncertainties and digesting recent inflation data. The Dow Jones Industrial Average fell by 526 points, marking a reduction of 1.1%. Concurrently, the S&P 500 and Nasdaq Composite saw losses of 1.3% and 2.2%, respectively.

Technology Giants Under Pressure

The decline was significantly influenced by a drop in shares of major technology companies. Notably, Google and Amazon each lost over 3% while Microsoft and Meta experienced decreases of about 2%.

Inflation and Consumer Sentiment

The day’s market performance followed a report indicating that consumer sentiment for March fell short of expectations, correlating with rising inflation expectations, which have reached multi-decade highs. Moreover, the core personal consumption expenditures price index reported a 2.8% rise in February, surpassing economists’ expectations.

Dan Siluk, a portfolio manager at Janus Henderson, remarked, ‘The latest PCE report presented mixed results, with headline figures aligning with expectations, while core numbers reveal a slight but notable increase.’ He added that persistent inflation levels could influence future monetary policy adjustments.

Tariff Impacts

Investors remain vigilant over President Donald Trump’s recent tariff announcements, including a proposed 25% tariff on all vehicles not manufactured in the U.S. This news has raised fears of an impending economic slowdown.

Moreover, reports indicate that the European Union is exploring concessions to alleviate rising tariffs following Trump’s proposals.

Additional Declines and Market Trends

This week marked a potential fifth weekly decline for Wall Street, with the Nasdaq down by 1.9% week to date. Lululemon also faced setbacks, plummeting over 14% due to disappointing guidance.