Market Jitters: Inflation Concerns and Economic Slowdown Rattle Stocks

The main U.S. stock indexes declined as data pointed to a slowdown in economic growth and rising inflation. Investors are eyeing a possible ruling on tariffs by the Supreme Court, with implications for tariff collections. Private equity and technology stocks also showed weaknesses, adding to market uncertainties.

The U.S. stock market faced declines on Friday as data revealed a more significant economic slowdown than anticipated in the fourth quarter and an uptick in inflation for December. Concerns over a U.S. Supreme Court decision regarding tariffs further fueled market anxieties.

At 10:00 a.m. ET, the potential ruling could impact over $175 billion in tariff refunds, triggering investor caution. The GDP grew at a modest 1.4% annualized rate, contrasting with the forecasted 3.0%, amid the residual effects of the previous year's government shutdown and slowed consumer spending.

Private equity firms, including KKR & Co and Apollo Global Management, saw stock declines, similarly affected by valuation concerns surrounding technology stocks. Established companies like Tesla and Nvidia traded lower, and the tech sector's struggle continued as investors worried about the belabored payoff of investments in AI.