US Market Selloff Intensifies as Nasdaq Composite Tumbles 2.5% on Trade Tensions
The Nasdaq Composite led the market downturn, dropping 2.5% as tech stocks faced heavy selling pressure.
- Shares of Alphabet and Amazon declined over 3%, while Microsoft and Meta lost approximately 2%.
- With Friday’s fall, both the S&P 500 and Nasdaq were set for their fifth weekly loss in six weeks.
Major US Indices Extend Losses Amid Inflation and Trade Concerns
The Dow Jones Industrial Average plunged 661 points (1.56%), while the S&P 500 fell 1.8%.
- The Nasdaq Composite suffered the most, tumbling 2.5% as investors pulled out of big-tech stocks.
- Shares of Alphabet and Amazon dropped 4%, while Microsoft and Meta fell 3%, dragging down the sector.
Rising Inflation Adds to Market Jitters
Fresh economic data pointed to persistently high inflation, fueling investor concerns.
- The Core Personal Consumption Expenditures (PCE) Price Index, a key inflation measure watched by the Federal Reserve, rose 2.8% year-over-year in February, surpassing the expected 2.7%.
- On a monthly basis, inflation climbed 0.4%, exceeding the 0.3% forecast.
- Consumer spending increased 0.4%, slightly below the projected 0.5%, as reported by the Bureau of Economic Analysis.
Further unsettling the markets, the University of Michigan’s consumer sentiment survey revealed that long-term inflation expectations had surged to their highest level since 1993, reinforcing fears of prolonged inflationary pressures.
Trade Tensions Escalate, Weighing on Market Sentiment
Trade concerns resurfaced as investors assessed the latest tariff announcements from the White House.
- President Donald Trump introduced a 25% tariff on all imported cars that are not manufactured in the U.S., sparking a sell-off in auto stocks.
- The move raised concerns about a broader economic slowdown, further dampening investor confidence.
- Meanwhile, reports from Bloomberg indicated that the European Union was considering offering concessions to de-escalate trade tensions before the U.S. moves forward with additional tariffs after April 2.
Weekly Market Performance: S&P 500 and Nasdaq Face Steep Declines
With the continued sell-off, major indices recorded weekly losses for the fifth time in six weeks.
- The S&P 500 fell over 1% for the week, while the Nasdaq slid more than 2%.
- The Dow Jones Industrial Average was also set for a 0.8% weekly decline, marking another tough period for Wall Street.
European Markets React to US Tariff Moves
European markets also struggled as investors weighed U.S. trade policies and fresh economic data.
- The pan-European Stoxx 600 dropped 0.79%, marking its third consecutive decline.
- France’s CAC 40 and Germany’s DAX both fell around 1%, while the U.K.’s FTSE 100 remained near flat by the close.
The ongoing combination of inflation worries, trade tensions, and weak market sentiment continues to put pressure on global equities, leading investors to adopt a more cautious stance.