Wall Street Indexes Extend Weekly Losses to 4% Amid Persistent Elevated Inflation Worries

Barry Adams
28 Mar, 2025
New York City

Stocks on Wall Street turned lower in Friday's trading and extended weekly losses after an alternative measure of inflation painted a mixed picture. 

The S&P 500 index dropped as much as 1.5%, and the Nasdaq Composite declined 2% on the worry that persistent inflation is likely to delay future rate cuts. 

The personal consumption expenditure price index in February remained steady at an annual pace of 2.5%, but the core measure of inflation accelerated to 2.8% from 2.7% in the previous month. 

The watered-down measure of inflation used by the Federal Reserve understates inflation experienced by most families in urban locations because it takes into account consumer behavior to higher prices.

Despite the Fed's eleven rate hikes between 2022 and 2023, inflation is still persisting above the Fed's target rate of 2%.

With the ever-expanding list of new tariffs placed by the Trump administration, inflation is only going to pick up pace in the months ahead. 

 

Commodities, Currencies, Indexes, Yields

The S&P 500 index decreased 0.3% to 5,676.68, the Nasdaq Composite edged down 0.5% to 17,720.69, and the Russell 2000 index was down 0.2% to 2,061.01.

The yield on 2-year Treasury notes edged lower to 3.98%, 10-year Treasury notes decreased to 4.31%, and 30-year Treasury bonds declined to 4.66%.

WTI crude oil decreased $0.11 to $69.84 a barrel, and natural gas prices edged lower by $0.005 to $3.92 a thermal unit.

Gold increased by $17.92 to $3,073.91 an ounce, and silver edged down by $0.02 to $34.42.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.06 to 104.28 and traded at a two-year high.

 

U.S. Stock Movers 

Lululemon Athletica Inc. plunged 12.1% to $301.03, and the sports apparel retailer's results surpassed market expectations, but a weak outlook and tariff worries overshadowed the results. 

Automobile makers turned lower on the worry that the Trump administration's tariffs are going to disrupt the global supply chain and increase the cost of operations. 

Tesla decreased 2.9% to $265.26, General Motors dropped 2.5% to $45.99, and Ford Motor Company fell 2.9% to $9.69.

Braze Inc. jumped 7.4% to $39.34, and the customer engagement software company reported better-than-expected adjusted earnings in the fourth quarter.