The US stock market experienced a downturn on Friday, March 28, 2025, as inflation data came in higher than anticipated, exacerbating investor concerns amid ongoing trade tariff disputes. At 9:32 AM Eastern Time, the Dow Jones Industrial Average fell by 55 points (0.1%), the S&P 500 index declined by 18 points (0.3%), and the NASDAQ Composite dropped 100 points (0.6%).​

Inflation Data Surpasses Expectations

The core Personal Consumption Expenditures (PCE) price index, a key inflation metric closely monitored by the Federal Reserve, rose by 2.8% annually in February, slightly above January's revised 2.7% and exceeding market expectations. This uptick suggests persistent inflationary pressures in the economy. ​Reuters

Trade Tariff Concerns Intensify

Investor sentiment remains fragile due to President Donald Trump's aggressive trade policies, including the announcement of a 25% tariff on auto imports effective next week. These measures have heightened fears of increased inflation and potential slowdowns in economic activity. ​Reuters

Corporate Sector Highlights

• Lululemon Athletica: Despite reporting better-than-expected financial results for the holiday quarter, shares of Lululemon slumped 13% due to weak future guidance, raising concerns about consumer spending amid inflationary pressures. ​

• Apple and Meta Platforms: Reports indicate that the European Union plans to impose minimal fines on tech giants Apple and Meta under its Digital Markets Act next week, aiming to avoid escalating tensions with the US administration.​

Commodity Market Movements

• Crude Oil: Oil prices traded marginally lower on Friday but are set for a third consecutive weekly gain. Brent crude futures fell 0.3% to $73.11 a barrel, and US West Texas Intermediate crude slipped 0.2% to $69.77 a barrel. The gains are attributed to US threats of tariffs on countries purchasing Venezuelan oil and declining US crude inventories.​

• Gold: Gold prices hit a record high earlier on Friday, extending recent gains as trade tensions and inflation concerns increased demand for safe-haven assets.​

Investor Outlook

The combination of rising inflation and trade tariff uncertainties poses challenges for the Federal Reserve's monetary policy decisions. While the central bank opted to leave borrowing costs unchanged at its latest meeting, the current economic indicators may influence future rate adjustments. Investors are advised to monitor these developments closely, as they have significant implications for market stability and investment strategies.​

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