US: Stocks plunge on tariff fears, inflation data
[NEW YORK] Wall Street stocks plummeted on Friday (Mar 28), with all three major indices ending the day sharply lower in anticipation of a fresh wave of tariffs by US President Donald Trump next week.
The Dow Jones Industrial Average tumbled 1.7 per cent to 41,583.9, while the broad-based S&P 500 Index fell 2 per cent to 5,580.94.
The tech-focused Nasdaq Composite Index dived 2.7 per cent to 17,322.99.
The fear is that reciprocal tariffs to be announced on Apr 2 would “cause an economic slowdown”, said Adam Sarhan of 50 Park Investments.
“It’s going to hurt earnings across the board,” he warned.
Sarhan added that other countries might not act to reduce the tariffs’ impact and could retaliate.
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“That could lead to a global recession or a global economic slowdown, and that could hurt profits,” he said.
On Friday, Canadian Prime Minister Mark Carney told Trump that Ottawa will implement retaliatory tariffs to protect its workers and economy, after Washington announces added trade actions next week.
The stock market stumble also came as investors digested inflation data released earlier on Friday.
The personal consumption expenditures (PCE) price index excluding volatile food and energy costs rose more than anticipated last month, by 0.4 per cent from January.
From a year ago, the PCE price index, a preferred inflation gauge of the Federal Reserve, was up 2.8 per cent. This was higher than analysts expected as well. AFP
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