1. S&P 500 fell 0.4% amid economic concerns and tariff anxieties. 2. Meta and Microsoft reported strong earnings, boosting tech stocks initially. 3. Investors are worried about tariffs impacting inflation and consumer spending. 4. Core goods prices rose 3.7%, indicating stubborn inflation pressures. 5. Fed's potential rate cut in September now appears less likely.
Rising inflation and tariffs may suppress S&P 500 gains. Historical context shows that market downturns often follow tariff announcements.
The interplay of tariffs and inflation creates a significant risk for investor sentiment. S&P 500's performance often correlates with macroeconomic indicators like inflation and interest rates.
Immediate reaction to tariffs and inflation data suggests short-term impact. Long-term effects depend on broader economic recovery and Fed actions.