(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

US core inflation firmer in February

*

UBS Global Wealth Management cuts S&P 500 year-end target

*

Lululemon shares slide after bleak annual outlook

*

Indexes off: Dow 1.19%, S&P 500 1.39%, Nasdaq 1.96%

(Updates to mid-session trading)

By Pranav Kashyap and Johann M Cherian

March 28 (Reuters) - Wall Street's primary indexes fell

sharply on Friday, as data underscored underlying price

pressures, stoking fears that the Trump administration's tariff

maneuvers could further exacerbate inflationary trends.

A Commerce Department report showed the Personal Consumption

Expenditures Price index rose in line with expectations.

However, excluding volatile items such as food and energy,

the index rose more than expected on an annual basis in the

previous month, while consumer spending rebounded after falling

in January.

Adding to the unease, final figures released by the

University of Michigan showed consumer sentiment deteriorated

further in March.

Equities have experienced significant declines over the past

month, driven by concerns that President Donald Trump's wavering

policies might steer the economy towards a period of heightened

inflation and tepid growth, potentially complicating the Federal

Reserve's monetary policy trajectory.

"The problem is we don't know the rules and businesses

really struggle with that," said Bob Doll, chief executive

officer of Crossmark Investments.

"Part of the economic weakness we're experiencing and

likely to see more of is a function of individuals and

businesses saying 'I'm not quite sure what tomorrow's going to

bring, so I'll just be a little more cautious'."

An index tracking rate-sensitive banks fell

over 2%.

Traders continued to expect that the Fed will trim

borrowing costs by 25 basis points for the first time this year

in July, as reflected in data compiled by LSEG.

A report noted that policymaker Mary Daly still views two

interest-rate cuts this year as a "reasonable" expectation.

Trump's steadfast commitment to a 25% tariff on auto

imports, set to take effect next week, weighed on auto stocks

for a second day, with General Motors ( GM ) and Ford

falling over 2% each.

Attention now turns to a fresh round of tariffs the U.S.

intends to unveil on April 2, with Trump hinting that these

measures might diverge from the straightforward tit-for-tat

duties previously pledged.

Simultaneously, a report indicated that the European Union

is weighing concessions for Trump following the enactment of

reciprocal tariffs.

At 11:32 a.m. ET, the Dow Jones Industrial Average

fell 503.90 points, or 1.19%, to 41,795.80, the S&P 500

lost 79.13 points, or 1.39%, to 5,614.18 and the Nasdaq

Composite lost 349.44 points, or 1.96%, to 17,454.59.

The CBOE volatility index rose 1.63 points to a

one-week high.

Lululemon Athletica ( LULU ) was the latest to lower its

annual forecasts, citing unpredictability surrounding tariffs.

Shares of the sportswear maker plunged 14.9%, dragging the

consumer discretionary sector down by more than 2.5%.

On the flip side, bullion miners Harmony Gold and

Gold Fields jumped 9% and 6.3%, respectively, on higher

gold prices, as investors flocked to safe-haven assets.

The S&P 500 is facing its first quarterly decline in six

quarters, while the tech-centric Nasdaq braces for its most

significant quarterly drop in nearly two years.

UBS Global Wealth Management was the latest brokerage to

lower its

year-end target

for the benchmark index to 6400 from 6600.

Investors will also scrutinize speeches by Federal Reserve

policymakers Michael Barr and Raphael Bostic later today.

Wolfspeed's ( WOLF ) shares slumped about 48%, hitting their

lowest since 1998, a day after the chipmaker appointed a new CEO

amid its struggles to improve its financial position.

Declining issues outnumbered advancers by a 3.14-to-1 ratio

on the NYSE and by a 4.07-to-1 ratio on the Nasdaq.

The S&P 500 posted seven new 52-week highs and 10 new

lows, while the Nasdaq Composite recorded 28 new highs and 239

new lows.