Last Updated: 4:22 PM EST
Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 2.61%, 1.97%, and 1.69%, respectively. The inflation data released on Friday showed hotter-than-expected price increases, which raised concerns about the Federal Reserve’s ability to cut interest rates soon. The core Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation measure, rose by 0.4% in February — its biggest jump since January 2024 — and 2.8% year-over-year, both above forecasts.
Meanwhile, overall PCE, which includes food and energy, increased 0.3% month-over-month and 2.5% year-over-year to match expectations. Personal income grew by a strong 0.8%, while spending rose 0.4%, helping push the personal savings rate to 4.6%, its highest in eight months.
At the same time, consumer sentiment is falling sharply. The University of Michigan’s Consumer Sentiment Index dropped to 57.0 in March, down from 64.7 in February. It is worth noting that this was its third straight monthly decline. Consumers now expect inflation to rise further, with one-year expectations at 5.0% and five-year expectations jumping to 4.3%. Furthermore, the expectations index dropped 18% this month alone, and two-thirds of consumers now believe that unemployment will increase — the highest percentage since 2009.
All this data points to stubborn inflation and growing pessimism about the economy. Analysts say that these inflation trends and the weak consumer sentiment may cause the Fed to delay rate cuts, especially with new tariffs expected to add more pressure in the coming months.
First Published: 4:25 AM EST
U.S. stock futures declined early Friday due to tariff threats that have raised investors’ concerns about an economic slowdown. Also, investors await the release of February’s PCE (personal consumption expenditures (PCE) price index reading, which will throw more light on stubborn inflation levels. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.55%, 0.25%, and 0.34%, respectively, at 4:25 a.m. EST, March 28.
Yesterday, major indices fell due to President Donald Trump’s announcement of a 25% tariff on cars made outside the U.S. The Nasdaq 100, the S&P 500, and the Dow Jones Industrial Average fell 0.59%, 0.33%, and 0.37%, respectively, on Thursday.
Coming to the crucial PCE price index, the Federal Reserve’s preferred inflation reading, that will be released today, economists expect the headline reading for February to rise 0.3% on a sequential basis and 2.5% year over year.
Meanwhile, among key stock-specific news, athletic apparel maker Lululemon (LULU) will be in focus as the company’s underwhelming guidance overshadowed better-than-expected results for the fourth quarter of Fiscal 2024. LULU stock was down more than 10% in Thursday’s after-hours trading session.
At the time of writing, the U.S. 10-year treasury yield was up, floating near 4.326%. Simultaneously, WTI crude oil futures are trending lower, hovering near $69.60 per barrel as of the last check.
Elsewhere, European indices opened lower as Trump’s latest tariffs announcement raised fears of trade wars.
Asia-Pacific Markets Down on Friday Amid Tariff Wars
Most of the Asia-Pacific indices were in the red today amid fears of trade wars.
Also, Japan’s Nikkei index closed 1.8% lower while the Topix fell 2.07%.
Meanwhile, Hong Kong’s Hang Seng Index was down 0.65%. Further, China’s Shanghai Composite and Shenzhen Component indices ended lower by 0.67% and 0.57%, respectively.
Interested in more economic insights? Tune in to our LIVE webinar.