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US stocks tumble as deepening consumer gloom raises stagflation fears

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The shares of Wall Street fell on Friday, as the signs of stress between American consumers added to the concerns of the United States to a seizure of recession.

A group of data added a new guide that consumers are getting more concerned about how President Donald Trump assembles Definitions It will affect the world’s largest economy, while a separate report showed that the preferred inflation of the Federal Reserve has risen in February.

The dark data comes at a time when investors are concerned that Trump’s commercial fees, along with a broader feeling of uncertainty, will harm economic growth in the United States with increasing price pressures. The new reports sent investors rushing away from US shares And to the sanctuaries.

The S&P 500 fell from Wall Street in Wall Street 2 percent while the technology nasdaq compound is 2.7 percent. The debt of the US government, which prompted the treasury for 10 years to a decrease of 0.11 percentage points to 4.26 percent.

“American data only affects recession,” said James Knightley, an economist at the investment bank at the Investment Bank. “Hot inflation and spending on consumers are the trends that President Trump’s aggressive movements will be intensified on definitions and reduced government spending.”

A survey conducted by the University of Michigan on Friday showed that the feeling of consumers had decreased in March, when the Americans worried about the prospects of their jobs, Economic inflation And income levels. Families expect the long -term inflation of 4.1 percent, the highest since 1993.

“This month decreased [in sentiment] It reflects a clear consensus through all demographic and political affiliations. ”

He added: “The Republicans joined the independents and democrats in expressing the increasing expectations since February because of their personal money, working conditions, unemployment and inflation.”

Meanwhile, consumers’ spending increased by 0.4 percent last month, a reflection of a 0.3 percent decrease in January, but not as much as the economy expects by 0.5 percent, according to a separate report on the US Economic Analysis Office.

Oliver Allen, chief American economist in the macroeconomic economy, said that consumer spending data was “disappointing” and that “the basic slowdown in demand growth seems to be underway.”

Goldman Sachs reduced its expectations for GDP in the first quarter in response to weak data, by 0.4 percentage points to an annual growth rate of 0.6 percent, pointing to the “softening” personality of expected in February and a downward review to January.

The ATLANTA FED team also reduced the running forecast for GDP in the first quarter to show a 2.8 percent contrast on an annual basis, compared to 1.8 percent recently on Wednesday. Its model contrasts with Wall Street Banks, which still expects to grow in early 2025.

The BEA report also showed on Friday that the basic reading of the Personal Consumption Prices for Prices increased by 2.8 percent in February last year.

Economists expected the index, the measure that the Federal Reserve, which raises food and energy, would be 2.7 percent, unchanged from a rate decreased in January. The main PCE index rose by 2.5 percent last month, unchanged from January.

Federal Reserve Bank earlier this month She strengthened her expectations For inflation and reduce his perception of growth. Federal Reserve Chairman, Jay Powell, said at the time that the US economy is still in good condition and that the central bank “does not need to be in a hurry” to reduce interest rates after 1 percentage of last year.

However, the head of the Chicago branch at the Federal Reserve Bank, Austan Fuolsby, told the Financial Times this week that the central bank was no longer on the “golden track” in 2023 and 2024 when inflation seemed to return to the target of 2 per cent without getting out of economic growth or raising unemployment.

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2025-03-28 20:49:00

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