Wall Street experienced a sharp decline, driven by a drop in consumer confidence and Donald Trump's new tariff announcement.
Consumer Confidence Decline
The Conference Board reported that consumer confidence fell by 7 points to 98.3 in February, well below Wall Street's expectation of 102.5. This indicates a crack in consumer spending power, with inflation expected to rise to 6% next year.
Tech Sector Financial Losses
The Nasdaq index bore the brunt of the sell-off, falling 1.8%. Tesla's shares dropped 7.8%, and Palantir's fell 3.6%. It's noteworthy that while the tech sector has seen massive growth since 2009, the current decline is driven by inflation fears and market uncertainty.
Trump's Economic and Geopolitical Moves
Donald Trump confirmed a 25% tariff on Canadian and Mexican imports, which led to a rise in commodity prices. His economic policies faced legal setbacks, as several federal judges blocked parts of his initiatives.
The sharp market decline reflects high investor tension, fueled by decreasing consumer confidence and the economic measures of the Trump administration.
