#NewsFatafat | Deep gashes on the Wall Street with all three benchmark indices closing in the red. Hotter-than-expected inflation data and uncertainty over upcoming tariffs send markets in downward spiral#Nasdaq #WallStreet pic.twitter.com/KcZHv6iHkY
— ET NOW (@ETNOWlive) March 29, 2025
The stock market took a sharp downturn on Friday as investors grappled with stubborn inflation data, weakening consumer sentiment, and ongoing tariff concerns. The Dow Jones Industrial Average closed more than 700 points lower, a 1.7% drop, while the S&P 500 fell 1.97% and the Nasdaq Composite slid 2.7%. All three major indexes ended the week in the red, with the S&P 500 down more than 5% for the year so far.
#MarketAlert | Bonds and Currency: Dollar weakened on growth concerns ahead of Trump’s tariff announcement#Dollar #TrumpTariffs pic.twitter.com/avCduOlBdJ
— ET NOW (@ETNOWlive) March 29, 2025
Data from the Commerce Department showed that inflation in February remained persistent, with the Personal Consumption Expenditures (PCE) index rising 2.5% year-over-year, unchanged from January. The core PCE index, which excludes volatile categories like food and energy, ticked up to 2.8% year-over-year from 2.7% in January, signaling that inflation remains above the Federal Reserve’s target of 2%. Consumer sentiment also took a hit, falling 12% this month according to the University of Michigan’s latest survey.
This contributed to a selloff across various sectors, including technology, autos, and airlines. Google slid 4.9%, Stellantis dropped 4%, and Delta Air Lines fell 5%. Lululemon’s stock tumbled 14% after the company raised concerns about consumer spending during an investor call.
Fox Biz: "Whew folks, this is a tough way to end the week."
*cuts to Kudlow*
Kudlow: "So, markets crash over 700 points today after a bad inflation report, more tariff confusion, oh, and by the way — Republicans really gonna raise taxes?"
😬😬😬😬😬😬 pic.twitter.com/ZG4OQZxX6H
— Aaron Rupar (@atrupar) March 28, 2025
President Donald Trump’s tariff proposals have further clouded investor sentiment, stoking uncertainty on Wall Street.
Stocks slide amid economic concerns
Investors are grappling with Trump’s announcement of a 25% tariff on all cars shipped to the US, set to go into effect on April 3, with additional tariffs on car parts like engines and transmissions expected to take effect by May 3.
Art Hogan, chief market strategist at B. Riley Wealth Management, noted, “It’s natural for people to expect higher prices because we haven’t seen a trade war like this in recent history.”
The yield on the 10-year Treasury note fell to 4.26% as investors turned to government bonds, highlighting a risk-averse sentiment. The Cboe Volatility Index, or VIX, surged 16%, indicating heightened fear among investors.
Analysts have been revising their expectations for US stocks amid the ongoing trade uncertainties. UBS lowered its year-end target for the S&P 500 to 6,400 from 6,600, while Barclays reduced its target to 5,900 from 6,600, and Goldman Sachs cut its forecast to 6,200 from 6,500. Ed Yardeni of Yardeni Research also lowered his year-end target to 6,400 from 7,000.
In other markets, gold futures surged to a record high above $3,100, as the metal is often seen as a safe haven amid economic turmoil and a hedge against potential inflation. Goldman Sachs revised its year-end target for gold prices to $3,300, highlighting its expected sustained rise amid current uncertainties. As investors navigate through a mix of economic data, corporate earnings, and significant geopolitical developments, the market remains on edge, seeking clarity and stability in the days ahead.
