Stocks plummet after hot inflation report

[mystery-ak]

 Stocks plummet after hot inflation report
by Sylvan Lane - 03/28/25 4:29 PM ET


Stocks ended the week with steep losses after new federal data showed prices rising faster than expected, reigniting inflation fears on Wall Street.

The Dow Jones Industrial Average lost more than 715 points on the day, falling 1.7 percent. The Nasdaq composite lost 2.7 percent and the S&P 500 index fell 2 percent.

The stock slide began shortly after the Commerce Department released data showing an unexpectedly steep increase in consumer prices.

The personal consumption expenditures (PCE) price index rose 2.5 percent over the past year, but 2.8 percent without food and energy prices included. On a monthly basis, the PCE index advanced by 0.3 percent while core PCE increased by 0.4 percent.

“We are moving in the wrong direction and the concern is that tariffs threaten higher prices, which mean the inflation prints are going to remain hot. This will constrain the Fed’s ability to deliver further interest rate cuts,” James Knightley, chief international economist at AIG, said in a Friday analysis.

Stocks have fallen steadily over the past two months as Wall Street braces for the economic impact of President Trump’s trade agenda. Economists expect Trump’s new aggressive import taxes to boost the prices of key U.S. goods and slow the economy, which is already weakening after years of steady growth.

more
https://thehill.com/business/5219986-stocks-slide-federal-data-inflation/

[mystery-ak]

More in-depth analysis


John Carney 28 Mar 2025

Consumer Sentiment Slumps, Consumer Spending Rises

If you trust the surveys, we’re seeing the best of times and the worst of times. More Americans think we’re on the “right track” than at any time in over 20 years. Yet consumer sentiment is at the worst level in four years.

According to a recent Economist/YouGov poll, 41 percent of Americans now say the country is on the right track, the highest level since 2004. This remarkable improvement stands in stark contrast to the reported plunge in consumer sentiment, which according to the University of Michigan’s Consumer Sentiment Index for March 2025, sits at its lowest level since 2021.

There’s also an extremely wide gap between consumer sentiment about current conditions and expectations, and there has been for years now. Consumers have basically been predicting a severe downturn ever since they got slammed by Bidenflation in 2021-2022, and that slump has never materialized. As Aditya Bhave of Bank of America recently noted, “There is no historical precedent for this sort of ‘irrationality’ in expectations. In February too, the decline in expectations was twice as large as the drop in the present situation index.”

Among Democrats, this is even more extreme. Democratic assessments of the present situation indicate the current economy as pretty bad, but expectations indicate that Democrats see something worse than Covid and worse than the financial crisis coming down the economic pipeline. This “sky is falling” view likely reflects their frustration and despair over Trump’s return to power rather than actual economic conditions.

more
https://www.breitbart.com/economy/2025/03/28/breitbart-business-digest-consumer-confidence-is-narrative-spending-is-data/

[Canuck Conservative]

"According to a recent 1,000-person survey by life insurance and asset management firm Allianz Life, 71 percent of Americans believe inflation will worsen over the next 12 months, an increase from 60 percent in the fourth quarter of 2024."

https://www.newsweek.com/five-recession-indicators-usa-trump-tariffs-economy-downturn-2051996

That's why the endless on-again, off-again tariffs are so dumb ... they're an internal tax that Americans will pay, raising prices and inflation. They're also damaging business and consumer confidence, which is a reliable indicator of a recession.

Team Trump should hire some real Chicago-School economists to learn this, instead of just listening to Wall Street CEOs like Howard Ludnick (Cantor-Fitzgerald) and David Solomon (Goldman-Sachs). Those guys are bankers with MBAs, not economists.

They may know how to run a successful business, but they're clueless when it comes to international trade. And it shows.

[catfish1957]

This is the most oversold market of my lifetime. When you have blue chips with P/E's 50-100, the risk of the inevitable gravity is always there. The fact that gold is approaching $3100/oz has mostly gone unnoticed, but is a flashing red beacon that everyone should be heeding.

Flame me all you want, but I'd love to see a 50% correction, and be able to jump back in feet first.

[kevindavis007]

This is the most oversold market of my lifetime. When you have blue chips with P/E's 50-100, the risk of the inevitable gravity is always there. The fact that gold is approaching $3100/oz has mostly gone unnoticed, but is a flashing red beacon that everyone should be heeding.

Flame me all you want, but I'd love to see a 50% correction, and be able to jump back in feet first.

So you want to see people lose much money on their 401k...

[berdie]

This is the most oversold market of my lifetime. When you have blue chips with P/E's 50-100, the risk of the inevitable gravity is always there. The fact that gold is approaching $3100/oz has mostly gone unnoticed, but is a flashing red beacon that everyone should be heeding.

Flame me all you want, but I'd love to see a 50% correction, and be able to jump back in feet first.

Good for you. But many people that are seriously older may not have that luxury. I only check my IRA balance at the end of the month. I think I'll skip it this month. I may do something stupid and move everything to cash...but since the dollar is being devaluated 

[kevindavis007]

Just a warning:

https://twitter.com/PhilWMagness/status/1906027732351287658

[Timber Rattler]

No worries...Trump will simply threaten the Federal Reserve and stock traders to force inflation, prices, and the market into doing what he wants them to do, just like he threatened the automobile manufacturers.

 

[kevindavis007]

Winning...

https://twitter.com/NewsWire_US/status/1906731501166711018

[kevindavis007]

https://twitter.com/JStein_WaPo/status/1906708439486665067

[kevindavis007]

https://twitter.com/eastmond_andrew/status/1906741340202824146

[kevindavis007]

https://twitter.com/ericadyork/status/1906758940760650097

[LMAO]

Just a warning:

https://twitter.com/PhilWMagness/status/1906027732351287658

@kevindavis007

 

And we saw this happen once already  what followed the Hoover Administration. And the housing crash in 2008 that ushered in the Democrats and Barack Obama who then  blamed the crash on capitalism.

[catfish1957]

So you want to see people lose much money on their 401k...

Good investors obsess by watching, tracking, diversifying, and adjusting  nimbly enough to thrive in any market.  If you didn't .....   that's on you.

So no I am unapologetic on this matter. No personal capital that is needed enough to live on, should ever be placed in equities. 

[DefiantMassRINO]

China, I can see because they don't have a private free market economy.  It was dumb to let a Communist country into the WTO.

Trump's focus should be on deregulation and legislation to lower the costs (mainly time) of doing business in America.

Trump and Congress should designate some Federal lands as opportunity zones free from state and local regulations.

It takes too much time and there is too much uncertainty to build manufacturing facilities in the US.

There need to be Federal zones, especially for industries critical to national, economic, and health security.

Why are housing prices so high in eastern Massachusetts?  Because no one is allowed to build houses by NIMBY town boards.

[catfish1957]

 

Am surprised and highly disappointed with this South Korea-Japan-China trade agreement today and my level of bullishness on the Trump Tariff plan is down.  This was supposed to be a leveling operation, but somehow some details slipped through the cracks.

This is an obvious unintended consequence of an apparent mis-step of the guy who promotes the "Art of the Deal". Why weren't Japan and SK schmoozed into some variable or phased enhanced system?  Why wasn't there some report of negotiations, rather than sabre rattling.  Trump had a great strategy and plan in place, but is failing to deliver on his own strategy.   Today showed the world that groups of countries can form regional agreements, and give us the finger.

If he was on his own show, he should Fire Himself.

Today sucks.....

[catfish1957]

As gold reaches its  almost daily new high----  Right now @ $3154/oz.  I hope all  realize that this translates into a world wide devaluation of currencies.

There have been historical events like these that predicated some hyper-inflation conditions.  Hope we see some stabilization soon.

[kevindavis007]

More winning




https://twitter.com/KyivPost/status/1906655859289002112?t=qcZpK9ZuaJ9Zyvlx6yWuXQ&s=19

[kevindavis007]

It's true




https://twitter.com/PhilWMagness/status/1906753767279562917?t=ykTu06osxq3bWYwG3Qq-ww&s=19

[Timber Rattler]

Am surprised and highly disappointed with this South Korea-Japan-China trade agreement today and my level of bullishness on the Trump Tariff plan is down.  This was supposed to be a leveling operation, but somehow some details slipped through the cracks.

This is an obvious unintended consequence of an apparent mis-step of the guy who promotes the "Art of the Deal". Why weren't Japan and SK schmoozed into some variable or phased enhanced system?  Why wasn't there some report of negotiations, rather than sabre rattling.  Trump had a great strategy and plan in place, but is failing to deliver on his own strategy.   Today showed the world that groups of countries can form regional agreements, and give us the finger.

If he was on his own show, he should Fire Himself.

Today sucks.....

So the scales are finally falling from your eyes about this guy?

[IsailedawayfromFR]

So you want to see people lose much money on their 401k...

Most 401ks over much time( a decade or more) have gone up 50% or more, so there will be negligible loss.

Only those who got in during the past decade have that exposure.

Stocks are long term investments, not short term, and if one cannot afford a loss over the short term, don't get into stocks.

[catfish1957]

So the scales are finally falling from your eyes about this guy?

Will be interested to see how he not only spins this, but counters.  But I will admit I am shocked that three of the top 10 most powerful economies in the world (Chicoms, SK and Japan) were able to be wrestled from our sphere (SK and Japan).  I said early on, that this could go either throw us into a golden age of prosperity, or sink us down the abyss of Tariff Hell.  I also knew that this was a delicate and tenuous process that had be done in the spirit of leveling the playing field instead of starting trade wars.   Not many realize this yet, but this is by far, the worst news Trump has gotten so far.

And if this is a World wide trade war, I will become his biggest critic. Your move Donnie.

[catfish1957]

https://twitter.com/rshereme/status/1906842210340921382

[kevindavis007]

Trumps tariff plan in a nutshell




https://twitter.com/PhilWMagness/status/1906510631550787749?t=RDB9t-lYv0daVwDNTyVMHQ&s=19

[kevindavis007]

So true




https://twitter.com/Jeff_Jacoby/status/1906854802530906129?t=zjNrkw0SfNysF3rQ7ada8Q&s=19

[LMAO]

This is why I’m not getting distracted by Trump‘s third term comments. This stuff is more immediate and important and the third term is not going to happen.

Unless Trump has a massive shift in policies in the next year or two like Bill Clinton did after the 94 midterms, it’s unlikely we’ll see any republican take the White House in 2028

The irony is Trump will probably ultimately be the one that kills his MAGA movement. When democrats are winning or coming close to winning in heavily GOP areas in special elections since Donald Trump, especially when the party overall has a 27% favorable rating, it doesn’t bode well for GOP electoral prospects next year

[Wingnut]

It's all doom and gloom with the never trumpers round here.  Show us where the bad orange man hurt your wallet. 

[LMAO]

It's all doom and gloom with the never trumpers round here.  Show us where the bad orange man hurt your wallet.

Donald Trump was asked yesterday by a reporter about the possibility of the economy, slipping into stagflation and his response told me he doesn’t know what stagflation is

If this was happening under Biden, I have no doubt that you would be joining us in our criticism.  Gas is now up to $3.29 where I live and inflations on the rise. That’s how bad orange man is going to hurt people‘s wallets

Dismissing people’s economic concerns is exactly what cost the Democrats in 2024 and the GOP and Trump will not be immune from people’s wrath if they continue down the same path


But you continue making  fun of people’s economic anxiety, and say hello to President AOC in 2028

[kevindavis007]

It's all doom and gloom with the never trumpers round here.  Show us where the bad orange man hurt your wallet.

How dare we question your Orange Dear Leader.

[kevindavis007]

Congress should revoke the power of the President to levy Tariffs

https://twitter.com/ericadyork/status/1906422437400441009

[Wingnut]

Donald Trump was asked yesterday by a reporter about the possibility of the economy, slipping into stagflation and his response told me he doesn’t know what stagflation is

If this was happening under Biden, I have no doubt that you would be joining us in our criticism.  Gas is now up to $3.29 where I live and inflations on the rise. That’s how bad orange man is going to hurt people‘s wallets

Dismissing people’s economic concerns is exactly what cost the Democrats in 2024 and the GOP and Trump will not be immune from people’s wrath if they continue down the same path


But you continue making  fun of people’s economic anxiety, and say hello to President AOC in 2028

Y'all have lost your mind. You sound like you are getting your talking points from MSNBC and CNN.   

Gas is up slightly...we are still under 3 here in the panhandle. Eggs are down bigly. under 3 also.   

[LMAO]

How dare we question your Orange Dear Leader.

Trump and his cult may not care about rising prices. But I can guarantee you that the voters will. Dismissing the economic anxieties of voters or making fun of them is a guaranteed path to electoral wipe out. I’m sure the Democrats can vouch for that after their loss in 2024. Instead of addressing the concerns that people had over the economy, they chose to mock them and call it Bidenomics. There was a commercial here in Wisconsin near the last week of the campaign with Harris saying she’s proud of Bidennomics

You can already see this starting to take shape in these special elections since Trump has taken office despite the fact that the Democratic Party has a favorability rating in the 20s.

 It’s not too late for Donald Trump to change directions. It will be after next year’s midterm elections.

 

[LMAO]

Y'all have lost your mind. You sound like you are getting your talking points from MSNBC and CNN.   

Gas is up slightly...we are still under 3 here in the panhandle. Eggs are down bigly. under 3 also.

This sounds eerily similar to when hotdogs dropped  slightly in price when Biden was president and they were all orgasmic over that despite the fact that people were still  paying more for everything

You’re also doing exactly what the Biden/Harris  did and that is to claim that people’s economic anxiety was caused by the media. But you go ahead and continue what you’re doing and don’t say that you weren’t warned

Then again we could go into deflation and that will help bring down prices, but it’ll also  trigger a recession or a Depression so you might get that out of the deal

[LMAO]

Congress should revoke the power of the President to levy Tariffs

https://twitter.com/ericadyork/status/1906422437400441009

This might be the beginning

https://www.newsweek.com/donald-trump-tariffs-don-bacon-republicans-2051743


Trump believes that if prices go up on imported cars, it’ll force Americans to buy American made cars. This is a guy who has failed that pretty much every business adventure he’s tried making this statement

What will happen people will hang onto their cars longer. But the price of parts will go up and their auto insurance will go up also. So why would anybody make cars that nobody’s buying? Both Donald Trump and progressives don’t seem to grasp human nature and the pursuit of their own self interest.


When it comes to economics, MAGA and the left share the same mindset

[kevindavis007]

Maybe MAGA should listen to the Gipper:




(1) Pradheep J. Shanker, M.D. on X: "This is why Reagan will always - ALWAYS - be the GOAT." / X

[cato potatoe]

Congress should revoke the power of the President to levy Tariffs

They will come under heavy pressure to do so.  Navarro wants to raise $6 trillion from tariffs.

[kevindavis007]

This sounds eerily similar to when hotdogs dropped  slightly in price when Biden was president and they were all orgasmic over that despite the fact that people were still  paying more for everything

You’re also doing exactly what the Biden/Harris  did and that is to claim that people’s economic anxiety was caused by the media. But you go ahead and continue what you’re doing and don’t say that you weren’t warned

Then again we could go into deflation and that will help bring down prices, but it’ll also  trigger a recession or a Depression so you might get that out of the deal

MAGA doesn't care that White Collar employees or service employees can lose their jobs.

[LMAO]

MAGA doesn't care that White Collar employees or service employees can lose their jobs.

MAGA will care about and parrot whatever Donald Trump tells them.

Imagine the reaction they would have if Biden said he didn’t care if prices went up or if Biden threatened an industry against raising prices as an adjustment to his policies

Just  keep in mind that MAGA is simply a cult. Nowhere on this earth, except for this administration, which is repeated by Trump’s in over her head press secretary, will or has ever claimed that tariffs are actually a tax cut for the American people.


If Trump came out today and said “why are we fighting amongst ourselves? A trade war will only hurt all of us. Let’s sit down and talk and let’s come to an agreement that will be beneficial to all” that would be a massive shift in the right direction. It would calm Wall Street jitters, and the business communities anxieties.

But he won’t.

[catfish1957]

It's all doom and gloom with the never trumpers round here.  Show us where the bad orange man hurt your wallet.

Have hardly been in that category.  I have supported the Trump tariff agenda as a means of leveling the trade playing field, but what we saw from the Oriental block  yesterday it  concerns me.   If these tactics are applied world wide by various regional areas  Trump will be playing a game of Gulliver's Travels, and will turn the  economic world into Liliput....we won't win.   My angle and thoughts are 5-15 years forward, and if we make ourself an economic island, the long term consequences aren't good.  In fact our status as World Reference Currency will very likely end.

But to your other point on the wallet.... 
Impact to me was minimal  thus far.  Monthly check showed portfolio down 0.159%.  But I don't expect many bad months, unless we get  something like '87, '00. 09, or '20.  I'm flexible on support here, but Trump better pull an Ace, if he wants to pull this off.  Because if he loses me, I am sure he loses many other  economics minded people also.

[LMAO]

They will come under heavy pressure to do so.  Navarro wants to raise $6 trillion from tariffs.

And I have a hunch that that pressure will ramp up if Democrats continue to either win or come too close for comfort in many of these strongly GOP districts in these special elections

Republicans in Congress will have it worse because the two choices they have will be to either continue to follow  Trump down this path  but risk losing their jobs in Congress or oppose Donald Trump on this  but risk losing their primaries

[DefiantMassRINO]

Bitcoin and Gold are both up.
The ^VIX is at 23.05.
Treasury Yields are falling.

Stocks are falling out of favor as an asset class.  Investors are getting out of the way of the falling knives.

Trump's bombast is counter-productive for diplomacy as no nation wants to be seen as 'America's Next Bitch'.

[catfish1957]

Bitcoin and Gold are both up.
The ^VIX is at 23.05.
Treasury Yields are falling.

Stocks are falling out of favor as an asset class.  Investors are getting out of the way of the falling knives.

Trump's bombast is counter-productive for diplomacy as no nation wants to be seen as 'America's Next Bitch'.

Few realize that on a macro-scale the price of gold is the ultimate benchmark of a currency, and hence an ecomomy's worth and standing  It's doubled now in the past 10 years.  Extrapolate accordingly.

If and when the $USD is no longer the reference currency is really when the SHTF.  If Trump's stategy fails, that demise will be accelerated.

[Timber Rattler]

It's all doom and gloom with the never trumpers round here.  Show us where the bad orange man hurt your wallet.

My wife just lost a major supplier from Denmark last week because of "Trump."

[catfish1957]

My wife just lost a major supplier from Denmark last week because of "Trump."

Sorry to hear that.  No chance of a competitive domestic choice, or are those items that have a certain level of specialization?

Or was it just anger at Trump?

[DefiantMassRINO]

The price of gold is a bad omen for King Dollar.

Tariffs are only effective as a bargaining chip if there are domestic alternatives to imports.

For many industries and markets, so few domestic alternatives exist in the US, it will lead to inflation, supply disruption, and export disruption as other nations retaliate.

Too much supply has moved overseas for domestic alternatives to make up the slack from tarriffed imports.

The better approach is to make the US a more favorable place to manufacture and to have Government procurement contracts give preference to domestic supply versus imported supply.

Give industries a reason to buiild in the US.  We don't care if the American auto plant is owned by BMW or Toyota, we just don't want it to relocate to Canada or Mexico.

IT offshoring was a big loser for the Federal Govrnment - lost jobs, lost wages, lost payroll taxes, knowledge transfer of competitive advantages, etc.

[Wingnut]

My wife just lost a major supplier from Denmark last week because of "Trump."

If only Demark would sell Greenland, your wife wouldn't be out a supplier.

[Timber Rattler]

Sorry to hear that.  No chance of a competitive domestic choice, or are those items that have a certain level of specialization?

Or was it just anger at Trump?

Nope...its specialized non-ChiCom/Danish-manufactured merchandise of a Viking theme.  Spring order canceled because of Trump's bellicosity against Denmark over Greenland.  The supplier was quite clear about that in its email.

I'll bet that my wife wasn't the only small business owner who got such an email from European suppliers.

Thanks Trump!

 

[Timber Rattler]

If only Demark would sell Greenland, Trump would stop threatening Denmark your wife wouldn't be out a supplier.

Fixed.

[Free Vulcan]

Good investors obsess by watching, tracking, diversifying, and adjusting  nimbly enough to thrive in any market.  If you didn't .....   that's on you.

So no I am unapologetic on this matter. No personal capital that is needed enough to live on, should ever be placed in equities.

Darn straight. It's the market, not an insured CD.

[catfish1957]

Darn straight. It's the market, not an insured CD.

Its become scary how many regular people are viewing a bull market as an entitlement.  That 30-50% correction is inevitable, and I truly pray that there are little or no folk out there who are putting their ability to pay their bills by underwriting them with equities.   

Gravity is inevitable.  And I hope not only are all prepared, but are ready to jump back in as investment opportunities.  The best time to invest is when the masses are heading toward  the exits.