Stocks decline due to economic worries, including concerns over US trade policies and weaker demand

From Nasdaq: 2025-03-28 14:29:00

Stock indexes, including the S&P 500, Dow Jones, and Nasdaq, are all down today due to concerns over US trade policies. Economic data showed weaker household demand and rising inflation. Fed comments added to the bearish sentiment, with tariffs expected to boost inflation. Stocks of chip makers and travel companies are leading the market decline.

The University of Michigan revised downward the US consumer sentiment index to a 2-1/3 year low, while inflation expectations rose. Markets fear US tariffs will hinder economic growth and corporate earnings. President Trump’s tariff actions have fueled economic uncertainty. The chance of a rate cut after the FOMC meeting is at 18%.

Interest rates are climbing today, with T-notes up on support from German bunds. Economic news showed mixed results, with lower-than-expected personal spending but higher core PCE price index. European bond yields are falling, with confidence in the Eurozone weakening. German unemployment rates are higher than expected.

US stock movers include tech giants like Tesla and Amazon down over 3%, while chip makers like Marvell and ON Semiconductor are down over 4%. Lululemon Athletica is leading losers in the S&P 500 and Nasdaq 100. Travel and hotel stocks are also down significantly. Oxford Industries forecasts lower earnings, while Leidos Holdings and Oracle face setbacks.

On the positive side, WR Berkley is up over 8% after a buyout deal, while AppLovin leads gainers in the Nasdaq 100. Rocket Lab USA secures a major contract with the US Space Force. Gold mining stocks like AngloGold Ashanti are up as gold prices soar. US Steel is up following talks with Nippon Steel about a merger deal.

Earnings reports for various companies are expected on 3/28/2025. The author of this article does not hold positions in the mentioned securities. All information provided is for informational purposes only. The author’s views do not necessarily reflect those of Nasdaq, Inc.



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