Wall Street Sudden Slump: FED's Rate Concerns & Trump's Tariff Warnings Shake Markets

Wall Street's main indexes saw declines, led by the Nasdaq, amid concerns over the Federal Reserve's potential caution on rate cuts due to persistent inflation. Trump's tariff policies added to investor concerns, impacting technology stocks the hardest, including Dell, HP, Nvidia, and Microsoft.

On Wednesday, Wall Street's primary indexes took a hit, with the Nasdaq leading the downturn as technology stocks plummeted. Concerns arose regarding the Federal Reserve's possible hesitation to lower interest rates, spurred by consistent U.S. inflation data on Thanksgiving Eve.

Consumer spending showed solid growth in October, reflecting the U.S. economy's strong pace. However, progress on curbing inflation seems stalled, prompting traders to expect a minor rate reduction in December. Meanwhile, President-elect Trump's Monday announcement of tariffs on Mexican, Canadian, and Chinese imports spurred further investor anxiety.

The Dow Jones fell 107.54 points, the S&P 500 lost 20.04 points, and the Nasdaq Composite dropped 116.33 points. Tech giants Dell and HP saw substantial losses after unfavorable forecasts, impacting the sector. Investors remain uncertain, balancing between economic data and Trump's policy plans.

(With inputs from agencies.)