Wall Street eased from record highs after Walmart's weak outlook raised concerns about consumer spending and economic growth, while investors also assessed signals from the Federal Reserve and trade policy uncertainties.

Minutes from the latest Fed meeting confirmed a cautious stance. Officials stressed the need for more evidence that inflation had cooled before considering rate cuts. Several policymakers suggested that rates could stay high if economic conditions remained strong and inflation persisted.

They also cited inflation risks from potential shifts in trade and immigration policies, supply chain disruptions due to geopolitical tensions and stronger-than-expected consumer spending.

Earlier in the week, President Donald Trump announced plans to impose a 25% tariff on imports of autos, semiconductors and pharmaceuticals, set to take effect on April 2, heightening trade uncertainty, particularly for multinational companies reliant on global supply chains.

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On Tuesday, U.S. officials, led by Secretary of State Marco Rubio, met with Russian representatives, headed by Foreign Minister Sergey Lavrov, in Saudi Arabia to initiate discussions on ending the war in Ukraine. Ukrainian President Volodymyr Zelenskyy reiterated that his country will not accept any peace agreement negotiated without its direct participation. Notably, no European representatives attended talks in Saudi Arabia.

Palantir Technologies Inc ( PLTR ) — the S&P 500's top performer in 2024 — plunged after reports indicated that the Pentagon, one of its largest clients, was preparing for deep budget cuts. Investor concerns grew further after CEO Alex Karp disclosed plans to sell nearly 10 million shares over the next six months.

Chinese technology stocks surged on Friday, led by Alibaba Group Holding Ltd ( BABA ) , which spiked after delivering strong earnings and upbeat guidance. Optimism also rose amid speculation that China's central bank could ease monetary policy, alongside new fiscal stimulus measures from policymakers after the annual parliamentary meeting in early March.

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Image created using artificial intelligence via Midjourney.