US stocks end week with huge losses

​​​​​​​By Gokhan Ergocun

ISTANBUL (AA) - US stocks ended the last trading day of the week with a sharp decline after data fueled inflation concerns and consumer confidence fell.

While the effect of President Donald Trump's trade policies on the economy continued to cause uncertainty, a negative course was observed in the stock markets.

The rise in the markets at the beginning of the week with optimism that the scope of Trump's reciprocal tariffs, which are expected next week, could be narrower, was reversed when the US imposed a 25% tariff Wednesday on imported cars.

Markets expect that Trump's tariffs could fuel inflationary pressures and damage economic growth.

While macroeconomic data are being closely monitored to get more information about the economic outlook in the US and the process of fighting inflation, data released Friday showed core price pressures increased more than expected last month.

Accordingly, the core personal consumption expenditures price index, which the Fed considers an inflation indicator, increased 0.4% on a monthly basis and 2.8% on an annual basis in February.

The monthly rate of increase in the index reached its highest since January 2024.

The consumer confidence index, measured by the University of Michigan, was also revised downward to 57 in March, recording its lowest since November 2022.

Consumers' short-term inflation expectations rose from 4.3% to 5% in March, reaching its highest since November 2022.

Long-term inflation expectations rose from 3.5% to 4.1%, the highest since February 1993.

The VIX Index, also known as the “fear index,” rose 15.84% to 21.65.

The Dow Jones industrial average dropped 1.69%, or 715.8 points, to end the day at 41,583.90.

The S&P 500 fell 1.97%, or 112.37 points, to 5,580.94, and the Nasdaq Composite was off 2.7%, or 481.04 points, to 17,322.99.