Tesla (Tsla) The status as a “winner” of the new automotive rates of President Donald Trump did not protect it from a market sale led by technology on Friday, while the stock followed Nvidia (Nvda) and the rest of the magnificent 7 lower after new economic numbers have pointed out to the possibility of stagflation.
The NASDAQ composite index rich in technology fell 2.7%, the S&P 500 decreased by 2%and the Dow Jones Industrial Average lost 715.8 points, or 1.7%. Google Parent Alphabet (Googl) led the lower mag 7, plunging 4.9%, Amazon (Amzn) The stock dropped by 4.3%, Tesla slipped 3.5%and Nvidia decreased 1.6%.
The personal consumption report for February published on Friday showed the basic defector of the PCE – the privileged inflation measure of the Federal Reserve – warming up while the actual expenses of households were weakening. Which creates a situation where the Fed is torn apart Between the reduction in price gains and the support of growth.
“Today’s report highlights the difficult situation that the Fed is confronted”, Citigroup (C) Economists have written. “In the end, we expect Fed officials to look into its full mandate, but it would depend on the data to come and in particular on March expenses and inflation.”
Trump’s trade war also weighs on investors. The 25% prices on all imports of cars, trucks and car that the president announced Wednesday evening continued to depress the actions of car manufacturers on Friday, with Stellantis (Stla) lower 4.1%, Ford (F) down 2% and general engines (GM) Off 1.1%. Toyota ADRs (TM), Volkswagen (Vwagy) and Honda (Hmc) also refused.
In addition, Lululemon (Lulu) Actions dropped by 14% after projections of sales and profits from the athleist clothing manufacturer missed analysts’ expectations. Business Bulled to update Its range of products to compete with more trendy brands, Reuters (SORTING) reported.
Chris Grisanti, chief market strategist at the Mai Capital Management, said that he was surprised by the reaction of the relatively benign market at the car rates, which were more Bellicians than he had planned it. He is now expecting new tasks on April 2 to also be Bellician, possibly followed by another moody reaction of investors.
President Jerome Powell and his political comrades will probably wait longer to see the impact of Trump’s prices, especially on inflation, before making a decision on the cup rates, said gray in quartz.
“The only way I see Trump get the Fed on his side is if he is singing the economy,” said Grisanti. “We can decide and want these economic figures as much as we wish, but the Fed is pending until we obtain a pricing clarity.”