Stocks tumbled on Friday as growing concerns over U.S. trade policy and persistent inflation rattled investors, triggering a broad market sell-off.
The Dow Jones Industrial Average plummeted 715.80 points, or 1.69%, closing at 41,583.90. The S&P 500 dropped 1.97% to 5,580.94, marking its fifth losing week out of the last six. The Nasdaq Composite took the biggest hit, sinking 2.7% to end at 17,322.99.
Tech giants were among the biggest decliners, weighing heavily on the broader market. Alphabet, Google’s parent company, plunged 4.9%, while Meta and Amazon each slid 4.3%. 
For the week, the S&P 500 fell 1.53%, while the Dow shed 0.96%. The Nasdaq posted a 2.59% decline and is now on track for an 8% monthly loss—its worst since December 2022.
Inflation Data Stokes Market Jitters
Market losses deepened after the University of Michigan’s final reading on consumer sentiment for March revealed the highest long-term inflation expectations since 1993. The core personal consumption expenditures (PCE) price index, a key inflation gauge, climbed 2.8% in February, surpassing economists’ expectations of 2.7%. Monthly inflation also rose 0.4%, higher than the anticipated 0.3%. Consumer spending, while growing at 0.4% for the month, came in slightly below the projected 0.5%, according to the Bureau of Economic Analysis.
“Investors are caught between rising inflation fears and trade uncertainties, particularly with upcoming tariffs expected to hit key exporting sectors such as technology,” said Scott Helfstein, head of investment strategy at Global X. He noted that despite the volatility, money market inflows have remained minimal, suggesting investors are waiting out the turbulence.
Tariff Tensions Escalate
Recent tariff announcements from the White House have added to market unease. President Donald Trump is set to unveil further trade measures on April 2, a date that investors are closely watching for policy direction.
Meanwhile, Canada has responded to the U.S. tariffs, with Prime Minister Mark Carney announcing retaliatory measures following new trade restrictions imposed earlier this week. Additionally, Bloomberg reported that the European Union is considering potential concessions to mitigate the impact of U.S. tariffs.
Earlier in the week, Trump imposed a 25% tariff on all foreign-made cars, a move that sent auto stocks into a tailspin and raised concerns over economic growth. Market watchers are now bracing for further policy announcements and their potential impact on global trade and financial markets.
