Market Turmoil: Inflation Fears and Tariff Troubles Hit Wall Street

Wall Street's main indexes fell as data showed rising price pressures, sparking inflation worries tied to Trump's tariffs. Market volatility was spurred by fears of stagflation and potential shifts in Federal Reserve policy, with global markets, including auto stocks, reacting to impending tariffs.

Wall Street's main indexes fell on Friday amid rising fears of inflation spurred by the Trump administration's tariffs. Fresh data from the Commerce Department showed that the Personal Consumption Expenditures Price index rose more than expected, igniting worries of stagflation and concerns over future economic growth.

Excluding volatile items, the index surged significantly, causing equities to decline sharply over the past month. Investors are apprehensive about how President Trump's policies might impact the Federal Reserve's monetary stance, with potential rate cuts anticipated by July.

Amidst global market reactions, Trump's 25% auto import tariff announcement, set for next week, drew criticism and contributed to auto stocks tumbling. As new tariffs loom, companies revise forecasts and markets brace for impacts, reflected in mixed performances on major stock indexes.

(With inputs from agencies.)