RTRS: WALL STREET TUMBLES AS FRESH DATA FUELS INFLATION FEAR

By Noel Randewich and Pranav Kashyap
       March 28 (Reuters) -
    Wall Street stocks tumbled on Friday, with sharp losses in
technology heavyweights Amazon and Microsoft, after U.S. data
stoked fears of weak economic growth and high inflation as the
Trump administration ratchets up tariffs.

        U.S. consumer spending rebounded less than expected in
February while a
    measure of underlying prices increased
     the most in 13 months.

        Adding to concerns, a University of Michigan survey
showed consumers' 12-month inflation expectations soared to the
highest in nearly 2-1/2 years in March, and that consumers
expect inflation to remain elevated beyond the next year.

        That data fueled fears that a rush of
    tariff
     announcements from U.S. President Donald Trump since taking
office in January will boost prices of imported goods, drive
inflation and deter the Federal Reserve from cutting interest
rates.

        Inflation and tariff worries sent shares of Wall
Street's most valuable companies sharply lower, with Apple
losing 2.4%, Microsoft down 3% and Amazon
falling over 4%.

        "One of the other big cautionary points for investors is
that the inflation impact of tariffs has yet to show up in the
data, which is why we believe this is the calm before the tariff
storm, with inflation likely to head more north than south in
the coming months," said Greg Bassuk, CEO at AXS Investments in
New York.
    The S&P 500 was down 1.87% at 5,587.11 points.
        The Nasdaq declined 2.51% to 17,357.64 points, while the
Dow Jones Industrial Average was down 1.62% at 41,612.69 points.

        Interest rate futures suggest traders see a 76%
likelihood that the Fed will cut interest rates by 25 basis
points by its June meeting, according to CME FedWatch.

        With Friday's losses, the S&P 500 is down about 9% from
its record high close on February 19. The Nasdaq is down 14%
from its record high close on December 16.

    "The problem is we don't know the rules and businesses
really struggle with that," said Bob Doll, chief executive
officer of Crossmark Investments.
    "Part of the economic weakness we're experiencing and likely
to see more of is a function of individuals and businesses
saying, 'I'm not quite sure what tomorrow's going to bring, so
I'll just be a little more cautious.'"
    The CBOE volatility index <.VIX> rose 3 points to a one-week
high.
    Ten of the 11 S&P 500 sector indexes declined, led lower by
communication services <.SPLRCL>, down 3.32%, followed by a
3.21% loss in consumer discretionary <.SPLRCD>.
    An index tracking interest rate-sensitive banks <.SPXBK>
fell almost 3%.
        A report noted that policymaker Mary Daly still views
two interest-rate cuts this year as a "reasonable" expectation.
    Trump's steadfast commitment to a 25% tariff on auto
imports, set to take effect next week, weighed on auto stocks
for a second day, with General Motors down 1.5% and
falling 2.6%.
        Attention now turns to a fresh round of tariffs the
Trump administration is set to unveil on April 2, with Trump
recently hinting that these measures might diverge from the
straightforward tit-for-tat duties previously pledged.
    Lululemon Athletica lowered its annual forecasts,
citing unpredictability surrounding tariffs. Shares of the
sportswear maker plunged about 15%.
        CoreWeave's
    CRWV.O
     shares opened nearly 3%
    below their offer price
     in the Nvidia-backed artificial intelligence infrastructure
firm's Nasdaq debut on Friday. That weak debut could crush hopes
of a meaningful recovery in stock market listings, especially as
equity markets
    grapple with
     tariff-related turmoil.

        Mining companies Harmony Gold and Gold Fields
jumped 9.5% and 4.3%, respectively, on higher gold
prices related to trade war concerns. [GOL/]
    The S&P 500 faces its first quarterly decline in six
quarters, while the tech-centric Nasdaq is set for its deepest
quarterly drop in nearly two years.
    UBS Global Wealth Management lowered its year-end target for
the S&P 500 to 6,400 from 6,600.
    Wolfspeed's slumped about 50%, hitting its lowest
since 1998, a day after the chipmaker appointed a new CEO amid
its struggles to improve its financial position.
    Declining stocks outnumbered rising ones within the S&P 500
<.AD.SPX> by a 4.7-to-one ratio.
        The S&P 500 posted nine new highs and 21 new lows; the
Nasdaq recorded 31 new highs and 313 new lows.


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 (Reporting by Pranav Kashyap and Johann M Cherian in Bangalore,
and by Noel Randewich in San Francisco; additional reporting by
Stephen Culp in New York; Editing by Maju Samuel and Richard
Chang)




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