Tech Giants Stumble as Economic Worries Grow

The stock market took a hit, with tech giants leading the way down. Tesla and Nvidia were among the top losers, despite Tesla's recent boost from new auto tariffs. The Nasdaq, S&P 500, and Dow Jones all fell. Amazon and Google's parent company, Alphabet, also saw significant drops. The economic data released was not good. The core PCE-deflator, which the Federal Reserve watches closely, showed inflation heating up. Meanwhile, household spending was weakening. This puts the Fed in a tough spot. They have to decide whether to fight inflation or support economic growth. The trade war is also causing trouble. New tariffs on cars and auto parts are hurting automakers. Stocks for companies like Stellantis, Ford, and General Motors all fell. Even foreign car giants like Toyota and Volkswagen were not spared. Lululemon, the athletic wear company, had a rough day too. Their stock plunged after they missed sales and profit predictions. The company is trying to update its products to compete with newer brands. Experts are surprised by the market's calm reaction to the new tariffs. They expect more economic uncertainty in the coming months. The Federal Reserve is likely to wait and see how the tariffs affect inflation before making any big decisions. The economy is facing a tricky situation. Inflation is rising, but spending is slowing down. This could lead to stagflation, a mix of slow economic growth and high inflation. It's a challenging time for investors and policymakers alike. The Federal Reserve has a tough job ahead. They need to balance fighting inflation with supporting economic growth. The new tariffs add another layer of complexity. It's a waiting game now, as everyone watches to see how the economy responds. The stock market's reaction to the tariffs has been surprising. Despite the potential economic impact, investors have remained relatively calm. This could change as more data comes in and the effects of the tariffs become clearer.