Dow sinks 500 points. Stocks are on track for their worst quarter since 2023

US stocks were lower Friday as investors digested inflation data that showed an uptick in one of the Federal Reserve’s key gauges, underscoring the delicate state of the economy as businesses brace for President Donald Trump’s tariffs.

US stocks were lower Friday as investors digested inflation data that showed an uptick in one of the Federal Reserve’s key gauges, underscoring the delicate state of the economy as businesses brace for President Donald Trump’s tariffs. The Dow opened lower and slid 500 points, or 1.2%. The broader S&P 500 fell 1.4% and the Nasdaq Composite slid 1.9%. The S&P 500 is down more than 4% since this year and on track for its first losing quarter since September 2023. The Personal Consumption Expenditures index rose 2.5% in February, unchanged from January and matching expectations. Yet the core PCE index, which strips out volatile categories like food and energy, ticked up to 2.8% from 2.7%. That hotter-than-expected rise signals that inflation, while broadly cooling, remains above the Fed’s target of 2%. Wall Street was also grappling with Trump’s announcement on Wednesday of 25% tariffs on all cars shipped into the US, set to go into effect April 3. Trump also announced tariffs on car parts like engines and transmissions, set to take effect “no later than May 3,” according to the proclamation he signed. Investors sold off stocks amid renewed anxiety about the impact of auto tariffs on the economy. Tariffs are a tax on imported goods, and economists expect Trump’s sweeping tariff proposals will cause an increase consumer prices and drag on economic growth.