Stocks experienced heavy selling on Friday, with the S&P 500 down as much as 2% and the Nasdaq falling nearly 3%, marking their fifth weekly decline in six weeks. Renewed inflation fears were sparked by a report from the Bureau of Economic Analysis showing higher than expected inflation in February, challenging the Federal Reserve’s efforts to keep interest rates high. Consumer confidence plummeted as inflation expectations rose, fueled by concerns over President Trump’s tariffs strategy. Additionally, worries over the payoff from massive investments in artificial intelligence grew, with shares in companies like Nvidia dropping significantly. Microsoft was reportedly scaling back plans for new data center projects, further indicating potential slowdown in AI spending. The market also saw a reduction in the price sought for an AI-related IPO, with CoreWeave slashing its proposed price range and number of shares. Despite these challenges, some analysts believe the recent selloff could be a temporary setback, as investors grapple with understanding new policies under the Trump administration. Overall, there is uncertainty surrounding tariffs and consumer spending, but investors are holding steady without significant inflows into money markets.
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