On Friday, the stock market declined as inflation pressures intensified and consumer sentiment weakened. The S&P 500 dropped 1.8%, influenced by a hotter-than-expected inflation index and troubling consumer confidence data. The Personal Consumption Expenditures price index saw an annual increase of 2.8%, raising worries about economic stability amid President Trump's impending auto tariffs. Consumer sentiment reported a significant drop of 12% in March, with inflation expectations reaching 5%, reflecting broader anxiety regarding the economic future and the effects of ongoing trade tensions.
Concerns about inflation and weak consumer sentiment dragged down the stock market on Friday as investors struggle to assess the U.S. economy's path forward.
The S&P 500 inched down at the start of trading, falling roughly 1.8 percent by midday due to intense inflation worries and declining consumer sentiment.
Consumer sentiment plummeted 12 percent in March, while expectations about inflation a year from now rose to 5 percent, marking the highest level since November 2022.
Uncertainty about the rollout of President Trump’s tariffs loomed large, intensifying the anxiety over potential inflationary effects and the overall economic outlook.
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