The main indices of Wall Street fueled this Friday, after data that showed a rebound in the pressures of the underlying prices that exceeded expectations, generating Concern for a tariff strategy of the administration of Donald Trump that could further enliven inflation flames. This diminished the hopes of clippings of closer rates.
In this context, the Dow Jones index of industrialists dropped 1.7% to 41,583.90 points; The S&P500 lost 2% to 5,580.94 points and the Nasdaq Composite depreciated 2.7% to 17,3222.99 points. Thus, the S&P500 is on its way to its worst month since September 2022.
The PCE exceeds expectations; Consumer confidence collapses
Risk confidence remains weak in Wall Street, especially after the Personal Consumption Expenditure Price Index (PCE), a close monitored inflation metric by the Federal Reserve, rose slightly in February, which gave the American central bank more reasons to be cautious with feat cuts in an immediate future.
The PCE General Price Index grew by 2.5% annually during the month, without changes with respect to the reading of January, but the metric called “basic”, which excludes more volatile items such as food and fuel, stood at 2.8% per year, slightly above 2.7% reviewed on January. The figure was expected to remain unchanged. However, the acceleration of the underlying inflation doubts the “optimistic perspective of Fed officials, who suggest that price disruptions could be temporary,” said Stifel Investiment Banking on Friday.
The figures are known at a time when the fear that the aggressive commercial agenda of US President Donald Trump, which includes tariffs both allies and adversaries, can revive inflationary pressures and negatively affect economic activity in general.
Meanwhile, the trust of the US consumer fell to its minimum in more than two years, just when long -term inflation expectations rose to their maximum in 32 years, given the persistent concern about the impact of tariffs.
Wall Street: The outstanding actions of the day
Coreweave He opened Au $ S39 per share in his debut at the Nasdaq on Friday, after setting the sale price of its initial public offer at $ 40 per share, at the end it was unchanged.
The titles of Lululemon Athletic They fell by 14.2%, since the weak forecasts of the sportswear brand eclipsed the financial results, better than expected, of the holiday quarter.
The actions of the main beverage companies Coca-cola (-0.5%) Pepsic (-0.4%) and Keurig dr pepper (-0.7%), They experienced moderate falls, after news that could affect sales of the sector. The decrease was promoted by the possible prohibition Robert F. Kennedy Jr., to the purchase of soft drinks with food coupons, a proposition that has gained the support of some state legislators and governors.
Wolfspeed, Inc. 52% collapsed due to investors on the company’s inability to ensure a debt exchange agreement with its bond holders. The concerns, initially reported by Reorg Research, took Wolfspeed to issue a press release addressing the problem. The semiconductor company maintains continuous conversations with lenders such as Apollo and Renesas, and is also in negotiations with the US government to obtain federal financing under the Chips Law.
The greatest increases and casualties of the wheel
Among the actions that were most appreciated appear Microalgo (+9.5%), Harmony Gold (+9.9%), soleno (+7.5%), Wr Berkley (+7.2%) and Applovin (+4.8%).
While the most resigned value found, Tonix (-19.5%), AAR (-16.5%), Lululemon (-14.2%), Concentix (-13.2%) and Pony Ai (-12.3%).
Trump’s anger and an amazing result
The European Union will impose minimal fines to Apple (-2.5%) and Platforms goal (-4.5%) under its Digital Markets Law (DMA) next week, with the aim of avoiding worsening with US President Donald Trump, according to the Financial Times.
Apple will pay a fine and you will be ordered to review the rules of your app store to avoid monopolistic situationswhile Meta will have a fine and will be ordered to change your “pay or consent” model, according to the newspaper report. “EU regulators will also close other Research on Apple related to the design of your web browser choice screen, without further sanctions planned.”
Under the DMA, companies can face penalties of up to 10% of their global turnover, which would imply strong fines for both companies. But the EU points to fines well below that threshold, according to the FT report, since “the DMA of the block is new and can still be challenged in court.”
The European Union will also seek to avoid more tensions with the US, Since Trump attacked EU sanctions in the past and has even referred to them as “extortion abroad.” The president also warned that it will impose commercial tariffs to countries that establish taxes on digital services against US companies.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
