Investor sentiment took a hit on Friday as the S&P 500 closed the week lower, driven by inflation data that exceeded expectations. This development has heightened concerns about rising prices and ongoing trade uncertainties.
Market Overview
At the close of trading at 4:00 p.m. ET (20:00 GMT), major U.S. indexes experienced notable declines:

Dow Jones Industrial Average: Fell by 716 points (1.7%)

S&P 500: Dropped by 2%

NASDAQ Composite: Decreased by 2.7%

These declines reflect a cautious market environment as investors digest mixed economic signals.
Inflation Data and Its Impact
A key focus was the core personal consumption expenditures (PCE) price index, a critical measure for the Federal Reserve. While the overall PCE increased 2.5% year-over-year—unchanged from January—the core PCE, which excludes volatile food and fuel prices, edged up to 2.8% from January’s 2.7%. This unexpected rise in core inflation has cast doubt on earlier projections that price increases might be short-lived.
Adding to the concern, consumer sentiment has fallen to a more than two-year low, while long-term inflation expectations have surged to a 32-year high. These trends suggest that uncertainty, especially around trade tariffs and economic policies, continues to weigh on investor confidence.
For those tracking market movements, detailed insights from the Market Most Active endpoint offer valuable context about trading volumes and investor behavior.
Corporate Developments Affecting the Market
Several key corporate events also influenced the market’s performance:

Coreweave’s Nasdaq Debut: Coreweave opened at $39 per share during its debut, just below its initial public offering price of $40, and later closed at $40.

Lululemon’s Earnings Guidance: Shares of Lululemon Athletica dropped by 14% after the company issued weak forward guidance, despite posting strong financial results for the holiday quarter.

Regulatory Updates: New reports indicate that regulatory actions in Europe could bring minor fines to major tech companies, a move aimed at easing international tensions.

Rocket Lab’s Strategic Win: Rocket Lab USA enjoyed a slight share increase following its selection for a significant launch program by the U.S. Space Force.

Investors looking for deeper financial insights might find the Price Target Summary endpoint useful for understanding how these corporate events could impact future market trends.
Looking Ahead
The combination of higher-than-expected inflation and persistent trade uncertainties underscores the fragile state of current investor sentiment. As market participants await further data and policy updates, the focus remains on how these economic pressures will influence corporate performance and overall market stability.