US stocks tumble as deepening consumer gloom raises stagflation fears

Wall Street stocks fell on Friday amid concerns of stagflation as data revealed consumer strain due to Trump’s tariffs, with the University of Michigan reporting a sharp decline in consumer sentiment and a rise in long-term inflation expectations. Consumer spending rose less than expected, prompting Goldman Sachs to lower its GDP forecast for the first quarter, while the Atlanta Fed revised its estimate to show a contraction. The Fed’s PCE price index indicated inflation above expectations, leading to speculation about potential interest rate cuts despite Powell’s reassurance about the economy’s strength.

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