Dow drops over 700 points, stocks heading for worst quarter since 2023
US stocks plunged Friday and a broad selloff gripped Wall Street as investors digested slightly stubborn inflation data and weakening consumer sentiment while wrestling with continued tariff anxiety.
The Dow tumbled 715 points, or 1.7%. The broader S&P 500 fell 1.9% and the Nasdaq Composite slid 2.6%, News.Az reports, citing CNN.
All three major indexes were on track to close the week in the red. The S&P 500 is down 5% since this year and on track for its first losing quarter since September 2023.
US stocks opened the day lower and began to slide as data from the Commerce Department showed inflation in February remained slightly sticky.
The Personal Consumption Expenditures index rose 2.5% year-over-year in February, unchanged from January and matching expectations. Yet the core PCE index, which strips out volatile categories like food and energy, ticked up to 2.8% year-over-year from 2.7% in January. That hotter-than-expected rise signals that inflation, while broadly cooling, remains above the Fed’s target of 2%.
Meanwhile, consumer sentiment tanked 12% this month, according to the University of Michigan’s latest survey released Friday.
The selloff gradually turned into a rout as investors dumped stocks in industries including technology, autos and airlines. Google (GOOG) slid 4.4%, Stellantis (STLA) slid 4.3% and Delta Air Lines (DAL) slid 5.2%.
The stocks leading the blue-chip Dow lower included Amazon (AMZN), Nike (NKE) and Goldman Sachs (GS).
Lululemon (LULU) stock tumbled 15% on Friday after the company flagged concerns about the outlook for consumer spending on a call with investors.
“We also believe the dynamic macro environment has contributed to a more cautious consumer,” said Calvin McDonald, chief executive at Lululemon.
The selloff in major names wasn’t the only concern for investors.
CoreWeave, an AI venture backed by chip giant Nvidia, had a disappointing debut on the Nasdaq Friday, offering a meager outlook for both the AI boom and the market for initial public offerings.
CoreWeave had listed its IPO at $40, which was below its target range of $47 to $55, according to the Wall Street Journal. However, the stock began trading on Friday at $39, below that IPO price.
The poor debut is a sign of cooling enthusiasm for AI as investors continue to debate whehter the money being poured into AI is worth it. It also offers a bleak outlook for IPOs this year as markets sturggle to look past headwinds from tariffs.
News.Az
