US stocks continued to slide amid uncertainty over the impact of President Trump’s economic agenda, including tariffs. Disappointing private sector and consumer sentiment surveys have sparked a selloff, with the S&P 500 dropping slightly on Tuesday.
The Nasdaq fell by more than 1%, extending declines of roughly 2.5% and 4.5% over the past five days. The tech-heavy index is expected to receive further attention when Nvidia releases its earnings report on Wednesday.
New data on consumer sentiment shows a weak reading, with expectations of future income and employment prospects weakening. This has led some analysts to question whether Trump’s agenda will cause inflation or slow growth.
The Federal Reserve’s preferred inflation metric, the Personal Consumption Expenditures (PCE) price index, is set for release on Friday, providing further insight into the impact of tariffs on consumer spending. Meanwhile, updated GDP growth numbers are expected to be released on Thursday.
Wall Street analysts have differing views on the effects of tariffs and Trump’s agenda, with some arguing that measures such as a 25% tax on goods from Canada and Mexico will ultimately function like a sales tax, potentially proving deflationary. However, others warn that a recession is at risk if interest rates are not cut to combat inflation.
The market’s fate is set for further clarification in the coming days, with key economic data releases due next week.
Source: https://fortune.com/2025/02/25/why-stocks-still-falling-market-awaits-nvidia-earnings-inflation-data-bated-breath