The Nasdaq was on track for a 0.4 percent decline over the week, while the S&P 500 and Dow appeared poised for modest gains.
US Benchmark indices Nasdaq Composite, S&P500 and Dow Jones witnessed a massive selloff on Friday as persistent inflation concerns and uncertainty over tariffs induced panic among investors.
The Dow Jones Industrial Average slipped 560 points, or 1.32 percent, while the S&P 500 declined 1.54 percent. The tech-heavy Nasdaq Composite took the biggest hit, falling 2.2 percent.
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Market sentiment took a hit after fresh data showed consumer inflation running hotter than expected. The core personal consumption expenditures (PCE) price index—a key inflation gauge watched by the Federal Reserve—rose 2.8 percent in February, slightly above economists’ estimates of 2.7 percent. Month-on-month, the measure increased by 0.4 percent, exceeding forecasts of 0.3 percent. Meanwhile, consumer spending climbed 0.4 percent, just below the anticipated 0.5 percent rise, according to the Bureau of Economic Analysis.
Adding to the volatility, investors kept a close watch on trade developments after President Donald Trump unveiled plans for a 25 percent tariff on imported cars that aren’t made in the U.S. The announcement rattled auto stocks and fueled fears of an economic slowdown. Meanwhile, Bloomberg reported that the European Union is exploring potential concessions to ease tensions and prevent a further escalation in reciprocal tariffs, with key decisions expected after April 2.
Despite Friday’s losses, the broader market was set for a mixed weekly finish. The Nasdaq was on track for a 0.4 percent decline over the week, while the S&P 500 and Dow appeared poised for modest gains.
Read more: US consumer spending barely rises, key inflation gauge picks up
Quite a few stocks were buzzing in trade. Lululemon Athletica shares nosedived 16 percent after the company’s 2025 outlook fell short of expectations and projects first-quarter earnings between $2.53 and $2.58 per share. Revenue guidance of $2.335 billion to $2.355 billion also came in below the $2.39 billion consensus. However, the company topped forecasts for both sales and profit in the fourth quarter.
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Bausch + Lomb shares fell 6 percent after the company issued a “voluntary recall” of certain implantable eye lenses due to reported complications. Wells Fargo responded by downgrading the stock to equal weight from overweight in a Thursday note.
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