U.S. Stocks Plunge on Inflation, Trade Concerns

U.S. stock markets experienced significant declines on March 28, driven by rising inflation concerns and declining consumer sentiment amidst ongoing trade policy uncertainty under President Trump's administration. The Dow Jones fell by 715.80 points, or 1.69 percent, while the S&P 500 and Nasdaq composite indices dropped by 1.97 percent and 2.70 percent, respectively. The core personal consumption expenditures (PCE) price index rose to an annual rate of 2.8 percent, prompting fears that the Federal Reserve might maintain higher interest rates for an extended period. This market downturn was exacerbated by a 12 percent plunge in consumer sentiment reported by the University of Michigan, along with apprehensions surrounding new tariffs on automobiles. Major technology stocks, including Alphabet and Amazon, also faced substantial losses, further impacting market performance. Analysts caution that ongoing inflation and trade policy uncertainty could result in slower economic growth.