Fri Mar 28 17:00:00 UTC 2025: **US Stocks Plummet on Inflation Fears and Trump Tariffs**
New York, NY (CNN) – US stocks experienced a sharp decline on Friday, with the Dow Jones Industrial Average falling 720 points (1.7%), the S&P 500 dropping 1.96%, and the Nasdaq Composite sliding 2.65%. The sell-off was fueled by a combination of factors, including rising inflation, weakening consumer sentiment, and anxieties surrounding President Trump’s newly announced tariffs on imported cars and auto parts.
The core Personal Consumption Expenditures (PCE) index, a key inflation gauge monitored by the Federal Reserve, rose to 2.8% year-over-year, exceeding expectations and signaling that inflation remains above the Fed’s 2% target. Simultaneously, consumer sentiment plummeted 12% according to the University of Michigan’s survey, reflecting growing economic uncertainty. Lululemon’s stock tumbled 15% after the company expressed concerns about weakening consumer spending.
President Trump’s announcement of 25% tariffs on all imported cars, effective April 3rd, further exacerbated market anxieties. Economists predict these tariffs will lead to higher consumer prices and stifle economic growth. The increased uncertainty is evident in the 10% surge in the Cboe Volatility Index (VIX), a measure of market fear, and the CNN Fear and Greed Index entering “extreme fear” territory.
Analysts are revising down their year-end targets for the S&P 500, reflecting a more pessimistic outlook. Gold prices, a traditional safe haven asset, surged to record highs, exceeding $3,100 per ounce. The market is closely watching the upcoming April 2nd deadline for reciprocal tariffs, with widespread concern that the current volatility will persist. Many experts believe that the aggressive tariff policy is causing businesses to become more cautious about investments.
First Piper 