U.S. Markets Slide as Inflation Data and Consumer Sentiment Weigh on Investors

The Dow drops over 500 points, while the Federal Reserve's inflation gauge complicates expectations for interest rate cuts.

The Dow Jones fell 1.21%, losing over 500 points to close at 41,788.66, with the S&P 500 and NASDAQ also posting significant losses of 1.49% and 2.11%, respectively.
The Federal Reserve’s preferred inflation measure, the PCE price index, rose 2.5% year-over-year in February, aligning with forecasts but reinforcing inflationary pressures.
Personal spending increased 0.4% month-over-month in February, falling short of the expected 0.5% growth, while personal income growth exceeded estimates at 0.8%.
Consumer sentiment, as measured by the University of Michigan index, declined to 57 in March, down from a preliminary reading of 57.9, reflecting growing economic concerns.
Global markets mirrored U.S. declines, with European and Asian indices mostly lower, as investors remain cautious about economic uncertainties and Federal Reserve policy direction.