US equities experienced notable declines, with the S&P 500 and Nasdaq dropping over 1%, reversing previous gains. Key inflation indicators, particularly the Personal Consumption Expenditures Price Index (PCE), signaled troubling economic conditions, posting a 0.4% monthly increase and an annual rise of 2.8%. This inflationary pressure raises concerns about future Federal Reserve monetary policy. Concurrently, consumer sentiment weakened significantly, reaching its lowest level since November 2022, as two-thirds of consumers foresee rising unemployment. Recent trade policies, including new tariffs, added uncertainty and affected market stability, particularly in consumer goods sectors.
US equities faced significant losses due to rising inflation worries, particularly indicated by a 0.4% monthly increase in the core Personal Consumption Expenditures Price Index, reflecting deteriorating market sentiment.
The University of Michigan consumer sentiment index dropped to 57, the lowest since November 2022, as consumers expressed negative expectations regarding personal finances and unemployment, signaling deep-rooted economic concerns.
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