On Friday, the U.S. stock market took a sharp downturn as investors grappled with President Trump’s latest tariff announcements and stubborn inflation data. The Dow Jones Industrial Average plunged more than 700 points, or nearly 1.7%, while the S&P 500 fell almost 2%. The tech-heavy Nasdaq Composite saw the steepest decline, dropping 2.7%.
#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 market sell-off was triggered by a combination of factors, including a hotter-than-expected Personal Consumption Expenditures (PCE) index reading, which showed a rise of 0.4% month-over-month and 2.8% year-over-year, remaining above the Federal Reserve’s 2% target. Additionally, the University of Michigan’s consumer sentiment index fell to 57 in March, its lowest level in over a year, as consumers worried about inflation and the overall economy. President Trump’s confirmation of new tariffs on foreign-made autos further unsettled the markets.
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
Investors are bracing for the potential escalation of the ongoing trade war, with broad reciprocal tariffs set to take effect on April 2. Tech and consumer discretionary stocks were among the hardest hit during Friday’s sell-off, with Amazon, Tesla, and Google parent Alphabet leading the market declines.
Markets slide amid inflation concerns
High-growth stocks and speculative investments faced substantial pressure amid heightened economic fears.
The Federal Reserve Bank of Atlanta’s GDPNow index forecasts a decline in U.S. gross domestic product (GDP) for the first quarter, emphasizing the economic uncertainty. In response to the market turmoil, investors sought safe-haven assets, with gold futures soaring above $3,100 to hit a new record.
it's another grim day for the stock market, and it's not likely to get better soon since next Wednesday is the "Liberation Day" when Trump says he's going to roll out even more tariffs pic.twitter.com/kP5Ps4JRK9
— Aaron Rupar (@atrupar) March 28, 2025
The precious metal has gained more than 17% over the past quarter, its best year-to-date performance in nearly four decades. UBS revised its S&P 500 forecast lower for 2025, with David Lefkowitz, head of U.S. equities at UBS Global Wealth Management, predicting weaker-than-expected earnings. The firm reduced its year-end price target for the S&P 500 to 6,400 from 6,600.
As investors navigate the volatile market conditions, the focus remains on upcoming economic data and policy announcements. The intersection of inflation, tariffs, and consumer sentiment will continue to drive market movements in the weeks ahead.
