NEW YORK, New York - Renewed fears about inflation, and U.S. Donald Trump's trade policies say American markets take a deep dive Friday.

"The market is getting squeezed by both sides. There is uncertainty around next week's reciprocal tariffs hitting the major exporting sectors like tech, alongside concerns about a weakening consumer facing higher prices hitting areas like discretionary," Scott Helfstein, head of investment strategy at Global X told CNBC Friday.

"Despite today's sell-off and broader market volatility of the past few weeks, there have not been big inflows into money markets. It seems like a lot of investors are trying to ride this out," Heifstein said.

Following are Friday's closing quotes for the key U.S. stock indices:

• Standard and Poor's 500: The benchmark index fell 112.37 points, or 1.97 percent, closing at 5,580.94. ​

• Dow Jones Industrial Average: The blue-chip index dropped 715.80 points, a 1.69 percent decrease, ending at 41,583.90. ​

• NASDAQ Composite: The tech-heavy index declined by 481.04 points, or 2.70 percent, to finish at 17,322.99. ​

The downturn was broad-based, with significant losses in communication services, consumer discretionary, technology, and financial sectors. Notably, Lululemon Athletica's stock plummeted 15.4 percent following a warning of slower revenue growth. ​

The decline was attributed to concerns over U.S. inflation figures and the potential impact of new tariffs on trade. ​

Market Drivers

Investor sentiment was dampened by the U.S. administration's announcement of a 25 percent tariff on imported vehicles, raising fears of a global trade war. Additionally, the Personal Consumption Expenditures (PCE) price index indicated rising inflation, fueling concerns about stagflation, a scenario of stagnant growth coupled with inflation.​

Global Forex Markets React to Tariff Announcements and Inflation Data

Global foreign exchange markets experienced notable fluctuations on Friday, influenced by recent U.S. tariff announcements and rising inflation concerns.

Major Currency Movements:

• EUR/USD: The euro strengthened against the U.S. dollar, bouncing back to 1.0824, an increase of 0.22 percent. ​

• USD/JPY: The U.S. dollar weakened against the Japanese yen, with the pair last quoted at 149.79, a decrease of 0.82 percent. ​

• USD/CAD: The U.S. dollar saw a slight uptick against the Canadian dollar, tot 1.4316, up 0.09 percent. ​

• GBP/USD: The British pound remained relatively stable against the U.S. dollar, settling at 1.2944, a marginal decline of 0.02 percent. ​

• USD/CHF: The U.S. dollar experienced a modest rise against the Swiss franc,firming to 0.8815, an increase of 0.07 percent. ​

• AUD/USD: The Australian dollar declined against its U.S. counterpart, sliding to 0.6286, down 0.26 percent. ​

• NZD/USD: The New Zealand dollar also weakened against the U.S. dollar, dropping to 0.5712, a decrease of 0.45 percent. ​

Influencing Factors:

The U.S. administration's recent decision to impose a 25 percent tariff on all vehicle and auto parts imports has raised concerns about potential inflationary pressures and a slowdown in global economic growth. This move has led to increased volatility in the forex markets as investors reassess risk and adjust their portfolios accordingly.​

Additionally, upcoming U.S. inflation data has kept traders on edge, with expectations that higher inflation could influence future monetary policy decisions. ​

Outlook:

As geopolitical tensions and economic policy shifts continue to unfold, forex markets are expected to remain volatile. Investors and traders will closely monitor upcoming economic indicators and central bank communications for further guidance on currency valuations.​

Global Stock Markets Close Lower Amid Broad Sell-Off

Stock markets across the globe closed predominantly lower on Friday, as investor sentiment was weighed down by concerns over economic growth and monetary policy. European indices experienced notable losses, while Asia-Pacific markets saw a mixed session, with some resilience in Australian and Indonesian equities.

Canadian Market 

• S&P/TSX Composite Index: Canada's main stock index decreased by 401.91 points, or 1.60 percent, closing at 24,759.15. ​

UK and European Markets Decline

London's FTSE 100 slipped by 7.27 points, ending the session at 8,658.85, a decline of 0.08 percent.

Germany's DAX fell significantly, losing 217.22 points, or 0.96 percent, to close at 22,461.52.

The CAC 40 in France also posted a notable drop of 74.03 points, or 0.93 percent, finishing at 7,916.08.

The EURO STOXX 50 index, which represents leading blue-chip companies across the Eurozone, dropped by 49.68 points, or 0.92 percent, to settle at 5,331.40. The Euronext 100 Index followed suit, declining by 16.13 points, or 1.01 percent, to 1,573.87.

Belgium's BEL 20 saw a milder decrease, falling by 28.00 points, or 0.63 percent, to close at 4,406.62.

Asia-Pacific Markets Mixed

China's SSE Composite Index fell by 22.44 points, or 0.67 percent, closing at 3,351.31.

In Japan the Nikkei 225 suffered a substantial decline of 679.64 points, or 1.80 percent, ending at 37,120.33.

Hong Kong's Hang Seng Index dropped by 152.20 points, or 0.65 percent, to end at 23,426.60.

In Singapore the STI Index shed 9.14 points, or 0.23 percent, closing at 3,972.43.

Meanwhile, Australia's S&P/ASX 200 managed to buck the trend, rising by 13.00 points, or 0.16 percent, to 7,982.00. The broader All Ordinaries Index also saw a slight increase, adding 10.00 points, or 0.12 percent, to finish at 8,195.50.

In New Zealand the S&P/NZX 50 Index posted a minor loss of 18.33 points, or 0.15 percent, closing at 12,287.46.

India's S&P BSE Sensex declined by 191.51 points, or 0.25 percent, to close at 77,414.92.

In Indonesia the IDX Composite stood out with a gain of 38.26 points, or 0.59 percent, ending the day at 6,510.62.

Malaysia's FTSE Bursa Malaysia KLCI fell sharply by 22.08 points, or 1.44 percent, to 1,513.65.

In South Korea the KOSPI Composite Index dropped significantly, losing 49.17 points, or 1.89 percent, to settle at 2,557.98.

Taiwan's TWSE Capitalization Weighted Stock Index also posted steep losses, declining by 348.87 points, or 1.59 percent, to 21,602.89.

Middle East Markets

Markets in the Mideast were closed Friday and will re-open on Sunday.

African and U.S. Dollar Index

In South Africa, the Top 40 USD Net TRI Index dropped by 62.54 points, or 1.29 percent, to 4,799.70.

The US Dollar Index slipped by 0.31 points, or 0.30 percent, finishing at 104.02.

Currency Indices Movement

The MSCI Europe Index declined by 12.09 points, or 0.54 percent, to 2,237.47. The British Pound Currency Index saw a minimal decline of 0.03 points, or 0.02 percent, to close at 129.45. Meanwhile, the Euro Currency Index edged up by 0.25 points, or 0.23 percent, reaching 108.25.

The Japanese Yen Currency Index gained 0.51 points, or 0.76 percent, closing at 66.72, while the Australian Dollar Currency Index declined by 0.16 points, or 0.26 percent, to 62.88.

Market Outlook

The broad declines in global markets indicate heightened caution among investors as they navigate economic uncertainties and policy shifts. Analysts will be closely monitoring upcoming economic data and central bank announcements for further cues on market direction in the coming week.

Related stories:

Thursday 27 March 2025 | Wall Street rattled by 25% tariffs on all cars made outside U.S. | Big News Network 

Wednesday 26 March 2025 |  AI stocks lead U.S. equity markets sharply lower | Big News Network

Tuesday 25 March 2025 | Dow Jones rises 4 points in lackluster day for U.S. stocks | Big News Network 

Monday 24 March 2025 | U.S. stocks advance as Trump hints at flexibility of tariffs | Big News Network