Wall Street tumbled Friday as fears of new tariffs and inflation concerns triggered a broad market selloff.
The Dow Jones Industrial Average dropped 1.7% to 41,583.90, while the S&P 500 shed 2.0% to 5,580.94. The Nasdaq Composite suffered the steepest decline, plunging 2.7% to 17,322.99.
Investor anxiety grew ahead of U.S. President Donald Trump’s planned announcement of new tariffs on April 2. Markets braced for potential retaliation, with analysts warning of economic fallout.
“The fear is that reciprocal tariffs could cause an economic slowdown,” said Adam Sarhan of 50 Park Investments. He cautioned that the measures could weigh on corporate earnings and spark a global recession.
Canadian Prime Minister Mark Carney responded swiftly, telling Trump that Ottawa would impose retaliatory tariffs to protect its economy. The statement signaled escalating tensions that could further shake investor confidence.
Adding to the market’s woes, fresh inflation data released Friday exceeded expectations. The core personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, rose 0.4% from January and climbed 2.8% year-over-year.
With inflation running hotter than anticipated and trade tensions mounting, investors remain on edge, watching closely for further developments.