Stocks have moved sharply lower during trading on Friday, extending the pullback seen over the two previous sessions. The major averages have all shown significant moves to the downside, with the tech-heavy Nasdaq leading the way lower.
Currently, the major averages are just off their worst levels of the day. The Nasdaq is down 347.90 points or 2.0 percent at 17,456.13, the S&P 500 is down 82.77 points or 1.5 percent at 5,610.54 and the Dow is down 523.49 points or 1.2 percent at 41,776.21.
The sell-off on Wall Street comes amid concerns about the outlook for the economy following the latest data, including the Federal Reserve’s preferred readings on inflation.
While a Commerce Department report showed consumer prices increased in line with economist estimates, core consumer prices rose by slightly more than expected.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3 percent in February, matching the increases seen in the two previous months as well as economist estimates.
The annual rate of growth by the PCE price index was 2.5 percent in February, unchanged from January and in line with expectations.
Meanwhile, the report said the core PCE price index, which excludes food and energy prices, climbed by 0.4 percent in February after rising by 0.3 percent in January. Economists had expected another 0.3 percent increase.
The annual rate of growth by the core PCE price index also accelerated to 2.8 percent in February from an upwardly revised 2.7 percent in January.
Economists had expected the year-over-year growth by the core PCE price index to tick up to 2.7 percent from the 2.6 percent originally reported for the previous month.
The report also showed real personal spending, which excludes price changes, inched up by just 0.1 percent in February after sliding by 0.6 percent in January.
“The acceleration in core PCE inflation and the softness in consumer spending is an unfavorable mix of economic data,” said Nationwide Chief Economist Kathy Bostjancic.
She added, “The data support our view that downside risks to the economy are emerging, but with inflation heating up, the Fed for now will maintain its wait-and-see approach.”
Stocks saw further downside after the University of Michigan released revised data showing consumer sentiment deteriorated by more than previously estimated in March.
The report also showed year-ahead and long-run inflation expectations surged by more than previously estimated during the month.
Sector News
Airline stocks are turning in some of the market’s worst performances on the day, dragging the NYSE Arca Airline Index down by 2.7 percent.
Considerable weakness is also visible among financial stocks, with the NYSE Arca Broker/Dealer Index and the KBW Bank Index tumbling by 2.5 percent and 2.3 percent, respectively.
Retail stocks have also shown a significant move to the downside, as reflected by the 2.4 percent slump by the Dow Jones U.S. Retail Index.
Computer hardware, software and housing stocks are also seeing notable weakness, while utilities stocks are among the few groups bucking the downtrend.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan’s Nikkei 225 Index tumbled by 1.8 percent, while China’s Shanghai Composite Index slid by 0.7 percent.
The major European markets have also moved to the downside on the day. While the U.K.’s FTSE 100 Index is down by 0.2 percent, the French CAC 40 Index and the German DAX Index are down by 1.0 percent and 1.1 percent, respectively.
In the bond market, treasuries have moved notably higher in reaction to the latest U.S. economic data. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 8.7 basis points at 4.282 percent.
Business News
U.S. Stocks Move Sharply Lower On Troubling Economic Data
2025-03-28 15:02:06
