Traders work on the floor of the New York Stock Exchange on Feb. 13, 2025.
Danielle DeVries | CNBC
U.S. stocks moved lower on Friday as investors grappled with ongoing tariff uncertainty and digested key inflation data.
The Dow Jones Industrial Average traded 222 points lower, or 0.5%. The S&P 500 dipped 0.4%, and the Nasdaq Composite shed 0.5%.
The core personal consumption expenditures price index 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 also 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.”
The report comes after a losing session for the major averages. On Thursday, the 30-stock Dow fell about 155 points, or 0.4%. The S&P 500 slid 0.3%, while the Nasdaq Composite dropped 0.5%.
Those moves took place after President Donald Trump announced a 25% tariff on “all cars that are not made in the United States,” the latest tariff development to roil the market. Investors — concerned that rising signs of weakening consumer sentiment are heightening the risk of a slowdown — are hoping April 2 will bring some much-needed clarity.
Wall Street was headed for a mixed weekly result. The Nasdaq was down 0.4% week to date, while the S&P 500 and Dow are headed for slight weekly advances.
