U.S. Markets Plunge as Inflation and Auto Tariffs Shake Investor Confidence

The S&P 500 fell 2% on Friday, marking its fifth losing week in six, as new auto tariffs and persistent inflation stoke fears of economic slowdown.

President Trump’s 25% auto import tariffs, set to take effect next week, have intensified global trade tensions and market volatility.
The Federal Reserve’s preferred inflation gauge, the core PCE index, rose 2.8% year-over-year in February, exceeding expectations and limiting the Fed’s ability to cut interest rates further.
U.S. consumer sentiment has dropped to its lowest level since 2009, with two-thirds of consumers expecting unemployment to worsen in the coming year, according to a University of Michigan survey.
Major U.S. stock indexes suffered steep declines on Friday, with the Dow Jones Industrial Average down 715 points (1.7%) and the Nasdaq falling 2.7%.
Tech stocks, including Apple, Microsoft, and Tesla, were among the hardest hit, as investors grapple with inflation concerns and tariff uncertainties.