US Stock Markets Decline Amid Inflation and Tariff Concerns
Key indices fall as inflation data raises uncertainty over interest rate cuts.
Major U.S. stock markets experienced significant declines on Friday following the release of the Personal Consumption Expenditures Price Index, the Federal Reserve's preferred measure of inflation, which showed no change in February, remaining at an annual rate of 2.5%.
The Dow Jones Industrial Average fell by 1.72% to settle at 41,570 points, while the Nasdaq Composite Index dropped by 2.68%, closing at 17,320 points.
In addition to the stagnation in the overall index for February, the core inflation rate, which excludes volatile food and energy prices, increased by one-tenth of a percentage point to 2.8%.
This upward movement in core inflation reduces market expectations for a swift reduction in interest rates by the Federal Reserve.
Concerns over inflation are compounded by the protectionist agenda of the U.S. government under President Donald Trump, particularly the imposition of tariffs on various imports.
These tariffs have generated uncertainty regarding inflation projections and have influenced both business and consumer confidence amidst rising living costs.
According to reports, the tariffs, particularly those affecting vehicle imports, are expected to readjust the automotive value chains significantly, which may lead to further implications for the economy and consumer prices.
The Dow Jones Industrial Average fell by 1.72% to settle at 41,570 points, while the Nasdaq Composite Index dropped by 2.68%, closing at 17,320 points.
In addition to the stagnation in the overall index for February, the core inflation rate, which excludes volatile food and energy prices, increased by one-tenth of a percentage point to 2.8%.
This upward movement in core inflation reduces market expectations for a swift reduction in interest rates by the Federal Reserve.
Concerns over inflation are compounded by the protectionist agenda of the U.S. government under President Donald Trump, particularly the imposition of tariffs on various imports.
These tariffs have generated uncertainty regarding inflation projections and have influenced both business and consumer confidence amidst rising living costs.
According to reports, the tariffs, particularly those affecting vehicle imports, are expected to readjust the automotive value chains significantly, which may lead to further implications for the economy and consumer prices.
