Investing.com-- The S&P 500 fell Friday, closing the week lower after widely-watched inflation data came in slightly hotter than expected, denting hopes of sooner rate cuts just as investors wrestle with ongoing trade tariff uncertainty.
At 4:00 p.m ET (20:00 GMT), the Dow Jones Industrial Average fell 716 points, or 1.7%, the S&P 500 index slipped 2%, and the NASDAQ Composite 2.7%.
PCE rises above expectations; consumer sentiment tumbles
Risk sentiment remains weak on Wall Street, particularly after the "core" personal consumption expenditures price index, an inflation metric closely monitored by the Federal Reserve, edged higher in February, providing the U.S. central bank with more reason for caution with rate cuts in the upcoming year.
The headline PCE price index grew 2.5% on an annual basis during the month, unchanged from January’s reading, but the widely-watched so-called "core" metric, which strips out more volatile items like food and fuel, came in at 2.8% annually, slightly above January’s revised higher 2.7%. The figure was expected to be unchanged.
The acceleration in core inflation, however, calls into question that "optimistic and rosy outlook" from Fed officials suggesting that price disruptions could be temporary, Stifel said in a Friday.
The numbers come as fears are growing that U.S. President Donald Trump’s aggressive trade agenda, which includes levies on both friends and adversaries alike, could refuel inflationary pressures and weigh on broader economic activity.
U.S. consumer sentiment, meanwhile, fell to a more than two-year low just as long-term inflation expectations jumped to a 32-year high as worries about the impact of tariffs persist.
Coreweave opens at $39/share on Nasdaq debut; Lululemon’s guidance disappoints
Coreweave opened at $39 a share in its Nasdaq debut on Friday, below selling pricing its initial public offering at $40 per share. Shares closed at $40.00.
On the earnings stage, Lululemon Athletica (NASDAQ:LULU) shares slumped 14% as weak guidance from the athletic apparel brand overshadowed better-than-expected financial results for the holiday quarter.
Additionally, the Financial Times reported that the European Union is set to impose minimal fines on Apple (NASDAQ:AAPL) and Meta Platforms (NASDAQ:META) under its Digital Markets Act next week in a bid to avoid worsening tensions with U.S. President Donald Trump.
Rocket Lab USA, Inc. (NASDAQ:RKLB) closed about 1% higher after wining a spot in the U.S. Space Force’s $5.6B launch program.
(Peter Nurse, Ambar Warrick contributed to this article.)