Shares of digital advertising leaders Alphabet, Meta Platforms, and Netflix dropped significantly due to ongoing market uncertainties tied to the Trump administration's tariff policies. The decline was exacerbated by disappointing economic data, including an inflation index showing higher-than-expected figures and a steep drop in consumer sentiment. These factors collectively suggest a slowdown in consumer spending, likely affecting advertising expenditures, which has investors on edge. The pervasive negative sentiment across political affiliations adds to the worry, raising concerns about potential ad budget contractions.
The Federal Reserve's PCE inflation index rose to 2.8% year on year, exceeding expectations, while consumer sentiment took a downturn across political groups, indicating a potential decline in ad spending.
Despite being financially strong, companies like Alphabet and Meta are affected by broader economic uncertainties, highlighted by disappointing economic data and concerns over consumer spending.
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