01:51 PM EDT, 03/28/2025 (MT Newswires) -- US benchmark equity indexes were lower intraday after latest data showed a surprise acceleration in the Federal Reserve's preferred inflation metric and a third straight monthly drop in consumer sentiment.

The Nasdaq Composite was down 2.6% at 17,341.1 after midday Friday, while the S&P 500 declined 1.9% to 5,585. The Dow Jones Industrial Average slid 1.7% to 41,590.7. Barring utilities, all sectors were in the red, led by communication services and consumer discretionary.

In economic news, US consumer spending rebounded last month, though the pace of growth fell short of Wall Street's expectations, while the Fed's preferred inflation metric unexpectedly accelerated, government data showed.

"Our current baseline calls for consumer spending growth to slow to 2% this year, and core inflation to breach back above 3% by mid-year," Oxford Economics said. "We think that combination will keep the Fed on extended pause, especially with inflation expectations showing increasing signs of becoming unanchored."

US consumer sentiment fell for a third consecutive month in March as the expectations index slumped and the inflation outlook jumped amid economic policy uncertainties, according to a survey by the University of Michigan.

"This month's decline reflects a clear consensus across all demographic and political affiliations," Hsu said. "Consumers continue to worry about the potential for pain amid ongoing economic policy developments."

The Trump administration is expected to announce reciprocal tariffs next week.

"We suspect the criteria for US reciprocal tariffs will be much broader than simply matching other countries' tariffs currently imposed on the US," Nomura said in a note. There's "massive uncertainty" regarding the target, size and scope of the anticipated tariffs, the firm said.

Earlier in the week, the White House announced 25% tariffs on imported passenger vehicles and certain auto parts, while Bloomberg News reported that the Trump administration may impose duties on copper imports in the coming weeks.

US Treasury yields were lower intraday Friday, with the 10-year rate slumping 11 basis points to 4.26% and the two-year rate decreasing 8.6 basis points to 3.91%.

In company news, Lululemon Athletica ( LULU ) shares tanked nearly 15%, the worst performer on the S&P 500. The athletic apparel and footwear company late Thursday provided a fiscal first-quarter outlook below market estimates amid cautious consumer spending.

Amazon.com (AMZN) MGM Studios head Jen Salke is stepping down to begin a new production entity, Reuters reported, citing an internal memo. Amazon ( AMZN ) shares were down 4.4% intraday Friday, the steepest decline on the Dow.

W. R. Berkley ( WRB ) was the top gainer on the S&P 500, up 7.7%. The company said Mitsui Sumitomo Insurance has agreed to buy 15% of its stock through open market purchases or private transactions with third parties.

West Texas Intermediate crude oil was down 0.8% at $69.38 a barrel intraday.

Gold increased 0.9% to $3,117.6 per troy ounce, while silver fell 0.8% to $34.80 per ounce.