American shares collapse when the deepening of consumer gloom increases Stagflation’s fears

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On Friday, Wall -Strit stock declined when signs of deformation among US consumers added the US to the Stagflation attack.

On Friday, a party of data added fresh evidence that consumers are growing deeply concerned about how the broad tariffs of Donald Trump will affect the world’s largest economy, while a separate report shows that in February the overwhelming meter of inflation of the federal reserve system is increasing.

The gloomy data comes at a time when investors are worried that Trump’s trade fees in conjunction with a broader sense of uncertainty will damage us the US economic growth while increasing the pressure. New reports were sent to investors who came off from US shares and shelters.

Friday in the middle of the day in the middle of the day in the middle of the day in the middle of the day in the middle of the day on Friday afternoon, focused on NASDAQ technology, by 2.6 percent decreased by 2.6 percent. The US government’s debt rallied, pushing the 10-year treasury by 0.11 percentage to 4.26 percent.

“US data is just a ignition of Stagflation fears,” said James Knitley, Investment Bank Ing economist. “Hot inflation and cooling of consumer expenses are trends that are probably intensifying the aggressive steps of President Trump at tariffs and reducing public expenses.”

Michigan University poll, published on Friday, showed that consumer moods were plunged in March when Americans are worried about their work prospects, inflation And the income level. Households also predict 4.1 percent inflation in the long run, which is the highest since 1993.

“The decrease in this month (in the mood) reflects the exact opinion in all demographic and political affiliations,” said the University of Michigan.

It is added: “Republicans have joined independent and Democrats, expressing deterioration of expectations since their personal finances, business conditions, unemployment and inflation.”

Meanwhile, consumer expenses increased by 0.4 percent last month, which changed by 0.3 percent in January, but not as much as the forecasting of economists by 0.5 percent.

US Senior Economist Pantheon Macroeconomics Oliver Aliver said that consumer expenses are “disappointed” and that “the main slowdown in demand also seems to be underway.”

Goldman Sachs reduced its forecast for GDP first quarter in response to weak data, by 0.4 percentage points by 0.6 percent, citing “softer than expected”, in February and revision up to January.

The Fed in Atlanta also reduced its first -quarter GDP forecast to indicate a 2.8 percent reduction on the annual basis, compared to 1.8 percent more recently as Wednesday. Its model was opposed to Wall -Rate, which are generally expected to grow in early 2025.

The BEA report on Friday also shows that the main reading index for personal consumption (PCE) increased by 2.8 percent in February compared to a year ago.

Economists expected the index, the measures, which is closely monitored by the Fed, which deprives food and energy, would increase by 2.7 percent, unchanged from the revised speed of January. The main PCE index increased by 2.5 percent last month, without changing from January.

Fed earlier this month increased your forecast For inflation and reduce its growth forecast. At the time, Fed Chairman Jay Powell said the US economy was still in good form, and the Central Bank “did not have to hurry” to reduce interest rates after cutting them by 1 percentage last year.

However, President of the Chicago Branch of the Fed, Aston Goldby, said the Financial Times this week that the Central Bank was no longer on the “golden path” 2023 and 2024, when inflation appears to be returned to the 2nd goal without breaking economic growth and not attracting unemployment.