Stocks lower on inflation concerns and trade uncertainties

Global stock markets closed sharply lower on Friday, weighed down by inflation concerns and uncertainty surrounding trade policies. In the US, the S&P 500 dropped 2%, the Dow Jones plummeted by 715 points, and the Nasdaq 100 slid 2.70%. Tech stocks led the sell-off, with Alphabet, Amazon, and Meta each losing over 4%, while Microsoft declined by 3%. Inflation fears intensified following the University of Michigan’s final consumer sentiment reading for March, which revealed the highest long-term inflation expectations since 1993. For the week, the S&P 500 and Nasdaq fell over 1% and 2%, respectively, marking their fifth decline in six weeks, while the Dow lost 0.80%.

European markets also ended lower, with the Stoxx 50 down 1.10% and the Stoxx 600 slipping 0.80%, recording a third consecutive losing session. Investors reacted to US economic data, particularly the core personal consumption expenditures (PCE) price index, which unexpectedly rose to 2.80%, indicating persistent inflationary pressures. Additionally, market sentiment was dampened by US President Donald Trump’s announcement of a 25% tariff on foreign-made cars, set to take effect on 2 April 2025, along with threats of additional tariffs on the EU and Canada, escalating trade tensions.

In Asia, the Hang Seng index fell 0.65%, snapping a two-day winning streak, and posted a weekly loss of 1.10%, its third straight weekly decline. Investors shifted away from riskier assets amid growing concerns that new US tariffs could hinder global economic growth. Meanwhile, Japan’s Nikkei tumbled 1.80% to a two-week low, with automakers bearing the brunt of Trump’s auto tariffs.

On the local front, the JSE ended the week 0.36% lower, while the rand weakened to R18.39/$ by 18h00.

Gold prices surged past $3 080 per ounce on Friday, reaching a record high as investors sought safe-haven assets amid fears of a global trade war triggered by Trump's tariff measures. The precious metal climbed nearly 2% for the week, marking its fourth consecutive weekly gain, driven by concerns over trade tensions, tariffs, and broader geopolitical risks.