United States benchmark averages tumbled on Friday as investor concerns over inflation and trade policy uncertainty deepened, prompting a broad market sell off.
The Dow Jones Industrial Average shed 715.8 points, or 1.7%, to close at 41,583.9, while the S&P 500 dropped 2% to 5,580.9. The Nasdaq Composite suffered the steepest decline, plunging 2.7% to settle at 17,323.0.
Technology stocks bore the brunt of the downturn, with Nvidia down 1.6%, Google-parent Alphabet falling 4.9%, Microsoft down 3%, while Meta and Amazon lost 4.3% apiece.
The losses contributed to a negative week for the major indices, with the Dow down 1%, the S&P 500 declining 1.5%, and the Nasdaq shedding 2.6%.
The latest market drop was triggered by the University of Michigan’s consumer sentiment reading for March, which indicated the highest long-term inflation expectations since 1993.
Additionally, the core personal consumption expenditures (PCE) price index - a key inflation measure - rose 2.8% in February, exceeding the expected 2.7%.
Concerns over trade policy added to market jitters last week, as the White House continued to unveil new tariff measures. Investors are closely watching April 2, when President Donald Trump is expected to announce additional tariff plans.
Meanwhile, Canadian Prime Minister Mark Carney informed Trump that Canada would impose retaliatory tariffs in response to recent U.S. trade measures.
In bond markets, yields declined, with the 10-year Treasury yield falling 2.5% to 4.251%, while the 2-year yield dropped 2.1% to 3.912%.
