Dow drops 500 points as inflation worries dent market sentiment: Live updates

U.S. stocks fell on Friday as investors grappled with ongoing tariff uncertainty and digested key inflation data.

The Dow Jones Industrial Average traded 59- points lower, or 1.6%. The S&P 500 lost 1.6%, and the Nasdaq Composite shed 2.2%.

The major indexes traded lower after a report on consumer sentiment for March slightly missed expectations, as inflation expectations reach multidecade highs.

Friday’s core personal consumption expenditures price index also came out hotter-than-expected, rising 2.8% in February and reflecting a 0.4% increase for the month, increasing concerns about persistent inflation. Economists surveyed by Dow Jones had been looking for respective numbers of 2.7% and 0.3%. Consumer spending accelerated 0.4% for the month, below the 0.5% forecast, according to fresh data from the Bureau of Economic Analysis.

“The latest PCE report presented mixed results, with headline figures aligning with expectations, while core numbers reveal a slight but notable increase,” said Dan Siluk, a portfolio manager at Janus Henderson. “Such resilience in core inflation, persistently above the Federal Reserve’s target, suggests expectations for a shift in monetary policy may need to be recalibrated, potentially affecting the timing of interest rate adjustments.”

Investors continue to monitor President Donald Trump’s tariff announcements, which have roiled the market. Trump this week announced a 25% tariff on “all cars that are not made in the United States,” hitting auto stocks and raising concerns of an economic slowdown. Bloomberg reported on Friday that the European Union is identifying concessions it’s could make to Trump’s administration to reduce the reciprocal tariffs from the U.S. that are set to increase after April 2, when Trump is expected to announce further tariff plans.

Wall Street was headed for a mixed weekly result. The Nasdaq was down 0.4% week to date, while the S&P 500 and Dow are headed for slight weekly advances.