1. S&P 500 fell 2% amid inflation concerns from tariff actions. 2. Core PCE rose to 2.8%, exceeding Fed's target of 2%. 3. Consumer sentiment hit lowest level since 2022, worsening economic outlook. 4. Trump's 25% auto tariff caused significant losses for auto stocks. 5. New tariffs expected April 2 may impact market stability.
The ongoing inflation concerns and uncertainty from tariffs negatively impact investor sentiment, recalling the market's reaction to similar issues in previous economic downturns. Historical examples include the 2018 tariff disputes which contributed to a bear market phase.
The article addresses core inflation, tariffs, and consumer sentiment, crucial for the S&P 500's performance due to their direct influence on market trends.
The immediate effects on the S&P 500 are driven by upcoming tariffs and inflation data, likely to influence market movements in the very near term.