Traders work on the floor of the New York Stock Exchange at the opening bell in the Financial District of New York City on March 17, 2025.
Angela Weiss | Afp | Getty Images
Stocks sold off Friday, pressured by growing uncertainty on U.S. trade policy as well as a more grim outlook on inflation.
The Dow Jones Industrial Average dropped 717 points, or 1.7%. The S&P 500 shed 1.9%, while the Nasdaq Composite plunged 2.6%.
Shares of several technology giants dropped, putting pressure on the broader market. Google-parent Alphabet and Amazon lost more than 3% each, while Microsoft and Meta each declined by about 2%.
Those declines put the S&P 500 and Nasdaq on pace for their fifth weekly decline in six weeks. The S&P 500 was down more than 1% for the week, while the Nasdaq had lost over 2%. The Dow was headed for a 0.8% decline.
Stocks took a leg lower after the University of Michigan’s final read on consumer sentiment for March reflected the highest long-term inflation expectations since 1993.
Friday’s core personal consumption expenditures price index also came out hotter-than-expected, rising 2.8% in February and reflecting a 0.4% increase for the month, increasing concerns about persistent inflation. Economists surveyed by Dow Jones had been looking for respective numbers of 2.7% and 0.3%. Consumer spending accelerated 0.4% for the month, below the 0.5% forecast, according to fresh data from the Bureau of Economic Analysis.
“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, a portfolio manager at Janus Henderson. “Such resilience in core inflation, persistently above the Federal Reserve’s target, suggests expectations for a shift in monetary policy may need to be recalibrated, potentially affecting the timing of interest rate adjustments.”
Those reports come amid a flurry of tariff announcements from the White House, which have roiled the market in recent weeks. Investors are looking ahead to April 2, when President Donald Trump is expected to announce further tariff plans, for further clarity.
On Friday, Canadian Prime Minister Mark Carney told Trump that the Canadian government will implement retaliatory tariffs following the April 2 announcements. Bloomberg earlier reported that the European Union is identifying concessions it could make to Trump’s administration to reduce the reciprocal tariffs from the U.S. that are set to increase after April 2.
Trump this week announced a 25% tariff on “all cars that are not made in the United States,” hitting auto stocks and raising concerns of an economic slowdown.
