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US core inflation firmer in February

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

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Lululemon shares slide after bleak annual outlook

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S&P 500 -1.87%, Nasdaq -2.51%, Dow -1.62%

(Updates with afternoon trading)

By Noel Randewich and Pranav Kashyap

March 28 (Reuters) -

Wall Street stocks tumbled on Friday, with sharp losses in

technology heavyweights Amazon ( AMZN ) and Microsoft ( MSFT ), after U.S. data

stoked fears of weak economic growth and high inflation as the

Trump administration ratchets up tariffs.

U.S. consumer spending rebounded less than expected in

February while a

measure of underlying prices increased

the most in 13 months.

Adding to concerns, a University of Michigan survey

showed consumers' 12-month inflation expectations soared to the

highest in nearly 2-1/2 years in March, and that consumers

expect inflation to remain elevated beyond the next year.

That data fueled fears that a rush of

tariff

announcements from U.S. President Donald Trump since taking

office in January will boost prices of imported goods, drive

inflation and deter the Federal Reserve from cutting interest

rates.

Inflation and tariff worries sent shares of Wall

Street's most valuable companies sharply lower, with Apple ( AAPL )

losing 2.4%, Microsoft ( MSFT ) down 3% and Amazon ( AMZN )

falling over 4%.

"One of the other big cautionary points for investors is

that the inflation impact of tariffs has yet to show up in the

data, which is why we believe this is the calm before the tariff

storm, with inflation likely to head more north than south in

the coming months," said Greg Bassuk, CEO at AXS Investments in

New York.

The S&P 500 was down 1.87% at 5,587.11 points.

The Nasdaq declined 2.51% to 17,357.64 points, while the

Dow Jones Industrial Average was down 1.62% at 41,612.69 points.

Interest rate futures suggest traders see a 76%

likelihood that the Fed will cut interest rates by 25 basis

points by its June meeting, according to CME FedWatch.

With Friday's losses, the S&P 500 is down about 9% from

its record high close on February 19. The Nasdaq is down 14%

from its record high close on December 16.

"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.'"

The CBOE volatility index rose 3 points to a one-week

high.

Ten of the 11 S&P 500 sector indexes declined, led lower by

communication services, down 3.32%, followed by a

3.21% loss in consumer discretionary.

An index tracking interest rate-sensitive banks

fell almost 3%.

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 ) down 1.5% and

falling 2.6%.

Attention now turns to a fresh round of tariffs the

Trump administration is set to unveil on April 2, with Trump

recently hinting that these measures might diverge from the

straightforward tit-for-tat duties previously pledged.

Lululemon Athletica ( LULU ) lowered its annual forecasts,

citing unpredictability surrounding tariffs. Shares of the

sportswear maker plunged about 15%.

CoreWeave's

CRWV.O

shares opened nearly 3%

below their offer price

in the Nvidia ( NVDA )-backed artificial intelligence infrastructure

firm's Nasdaq debut on Friday. That weak debut could crush hopes

of a meaningful recovery in stock market listings, especially as

equity markets

grapple with

tariff-related turmoil.

Mining companies Harmony Gold and Gold Fields

jumped 9.5% and 4.3%, respectively, on higher gold

prices related to trade war concerns.

The S&P 500 faces its first quarterly decline in six

quarters, while the tech-centric Nasdaq is set for its deepest

quarterly drop in nearly two years.

UBS Global Wealth Management lowered its year-end target for

the S&P 500 to 6,400 from 6,600.

Wolfspeed's ( WOLF ) slumped about 50%, hitting its lowest

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

its struggles to improve its financial position.

Declining stocks outnumbered rising ones within the S&P 500

by a 4.7-to-one ratio.

The S&P 500 posted nine new highs and 21 new lows; the

Nasdaq recorded 31 new highs and 313 new lows.