Tesla and Nvidia stock drop due to market selloff following economic concerns

From Yahoo Finance: 2025-03-28 16:36:00

Tesla’s stock dropped 3.5% as tech-led market selloff hit after new economic numbers pointed to stagflation. Nasdaq fell 2.7%, S&P 500 declined 2%, and Dow Jones shed 715.8 points. Google parent Alphabet led the decline, followed by Amazon, Tesla, and Nvidia.

Personal consumption report for February showed core PCE deflator heating up while real household spending weakened. Fed is torn between curtailing price gains and supporting growth. Citigroup economists expect Fed officials to lean toward full-employment mandate, pending upcoming data on March spending and inflation.

Trump’s 25% tariffs on car imports continued to depress automakers’ stocks, with Stellantis down 4.1%, Ford 2%, General Motors 1.1%. ADRs of Toyota, Volkswagen, and Honda also declined. Lululemon’s stock plunged 14% after missing sales and profit projections.

Market strategist surprised by mild reaction to auto tariffs, expects new duties on April 2 to also be hawkish. Powell and policymakers likely to wait longer to see impact of tariffs on inflation before deciding on rate cuts. Fed on hold until tariff clarity, says Grisanti.

Grisanti believes Fed will remain on hold unless Trump tanks the economy. Powell and policymakers will watch impact of tariffs on inflation before deciding on rate cuts. Fed awaits tariff clarity before making any decisions.

Read more: Tesla, Nvidia lose ground as markets take a tumble on bad economic news