Market Turbulence: Tech Stocks Drop Amid Inflation Concerns

The S&P 500 and Dow are poised for a slight increase despite ongoing inflation worries, fueled by recent policy proposals under the Trump administration. Notable declines in tech stocks like Nvidia and Dell have affected the market, as traders remain cautious and monitor potential Fed interest rate changes.

On Friday, the S&P 500 and Dow were set to open higher as January's inflation data met expectations, though concerns about potential Trump administration policies continue to make investors wary.

According to a Commerce Department report, the Personal Consumption Expenditures Price Index rose by 2.5% annually in January. The report also reinforced that inflation fears linger among investors, with attention firmly on comments from Chicago Fed President Austan Goolsbee. Market strategist Art Hogan noted the absence of an 'upside surprise' in inflation figures, although recent market declines reflect ongoing uncertainties regarding policy impacts.

Fears of a tech sector pullback were evident as Nvidia and Dell experienced significant stock declines due to concerns over overspending on AI infrastructure and slipping profit margins. Meanwhile, Trump's renewed tariff threats weighed on stocks tied to international trade, while crypto stocks mirrored the steeper slide in bitcoin prices.

(With inputs from agencies.)