Wall Street Drops as Inflation, Tariff Fears Rise

Wall Street faced significant declines as fears over rising inflation and President Trump's impending tariffs intensified. The Dow Jones dropped over 700 points, while the S&P 500 and Nasdaq also suffered steep losses, indicating a broader market downturn. A recent inflation report revealed that consumer prices are increasing faster than expected, contributing to declining consumer confidence, now at a 12-year low. Many Americans are cutting back on spending, particularly in discretionary areas, as they anticipate higher prices due to tariffs. Economists caution that the impact of tariffs on inflation has yet to fully materialize, suggesting that the current market turmoil may be a precursor to more severe financial challenges ahead. Trump's recent proposals, including tax deductions for domestic auto purchases, aim to bolster consumer spending but have not alleviated overall economic anxiety.