Wall Street tumbles: The S&P 500 plunged 2% on Friday as concerns over a weakening US economy and persistent inflation mounted. The Nasdaq Composite dropped 2.7%, and the Dow Jones Industrial Average dropped 715 points, or 1.7%.
Fears of stagflation — a combination of slow growth and high inflation — escalated as consumer sentiment deteriorated. Reports showed worsening inflation and weakening spending as Trump’s tariffs continue to impact the economy.
Key Market Losses
Lululemon Athletica led the losses, plummeting 14.2% despite better-than-expected earnings. CEO Calvin McDonald cited reduced consumer spending due to inflation concerns.
- Oxford Industries saw its stock fall 5.7% as consumer confidence waned.
- Delta Air Lines, Caesars Entertainment, and Domino’s Pizza all posted declines of around 5% each.
Inflation Data Adds Pressure
A fresh report showed core inflation rose more than anticipated in February, challenging the Federal Reserve’s 2% target.The data indicates that the Fed may keep interest rates unchanged in order to counteract increasing prices, notwithstanding expectations for rate reduction.
Trump’s Trade War Effects and Tariffs
Additional volatility has been brought on by the ambiguity surrounding Trump’s tariff proposals. Markets are anticipating further volatility as new vehicle import tariffs are set to go into effect on April 2. Automakers from South Korea and Japan, including Hyundai and Toyota, saw stock losses abroad.
Investor Outlook
With Wall Street facing its fifth losing week in the last six, investor confidence remains fragile. The Federal Reserve’s next move will be closely watched as policymakers navigate the dual challenges of inflation and economic slowdown.
Source: AP News
