Tech Stocks Tumble as Inflation Fears Escalate Amid Tariff Concerns

Wall Street saw significant losses with tech giants like Amazon and Microsoft dropping, driven by inflation worries and tariff fears. Consumer inflation expectations and lower-than-expected spending compounded concerns. Major indices fell sharply with most S&P sectors declining due to uncertainties in the market.

Wall Street stocks took a nosedive on Friday, significantly impacted by declines in technology behemoths such as Amazon and Microsoft. The drop comes as investors grapple with increased fears about inflation and the ripple effects of escalating tariffs, compounded by recent U.S. economic data indicating weak growth.

Consumer spending in the U.S. rebounded less dramatically than anticipated in February, while underlying inflation saw its most significant increase in 13 months. Coupled with a University of Michigan survey revealing heightened inflation expectations, these factors played a crucial role in unsettling the markets.

This bleak economic outlook brought forth notable declines in the S&P 500, Nasdaq, and Dow Jones indices, with technology and communication services sectors leading the downturn. Amidst this, attention is focused on upcoming tariff announcements from the Trump administration, which are expected to exacerbate market volatility.

(With inputs from agencies.)