Wall Street Plunges as Inflation Fears and Tariff Tensions Rattle Tech Stocks

Wall Street closed sharply lower Friday, led by steep declines in tech giants like Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL), amid growing concerns over high inflation and slowing economic growth. The S&P 500 dropped 1.97% to 5,580.94, while the Nasdaq plummeted 2.70% to 17,322.99, and the Dow fell 1.69% to 41,583.90.

U.S. economic data showed consumer spending rose less than expected in February, while core inflation surged the most in over a year. The University of Michigan’s consumer survey also revealed inflation expectations at their highest in nearly 2.5 years. Fears are mounting that escalating tariffs under President Trump will drive up costs on imports, worsen inflation, and prevent the Federal Reserve from cutting rates. Fed funds futures now price in a 76% chance of a rate cut by June, according to CME FedWatch.

Tech stocks were hit hardest, with Amazon falling 4.3%, Microsoft down 3%, and Apple shedding 2.7%. Ten of the S&P 500’s 11 sectors declined, with communication services and consumer discretionary leading losses. CoreWeave, an Nvidia-backed AI company, slumped in its Nasdaq debut, while Lululemon (NASDAQ:LULU) plunged 14% after lowering its annual outlook due to tariff uncertainties.

Auto stocks continued to slide, with General Motors (NYSE:GM) and Ford posting losses amid looming 25% tariffs on imports. Meanwhile, gold miners Harmony and Gold Fields surged on safe-haven demand.

For the week, the S&P 500 declined 1.5%, the Nasdaq 2.6%, and the Dow 1%. With a fresh round of tariffs expected April 2, investor sentiment remains fragile. The S&P 500 is now down 9% from its February high, with the Nasdaq off 14% from its December peak.