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.

Market Jitters: Inflation Concerns and Economic Slowdown Rattle Stocks

US Stock Market Declines Amid Economic Slowdown and Inflation Concerns

The US stock market experienced a downturn on Friday as crucial data revealed a more significant economic slowdown than anticipated in the fourth quarter and a surge in inflation for December.

Worsening economic conditions and inflation fears were further exacerbated by concerns over a potential U.S. Supreme Court decision on tariffs.

Market Implications of the Supreme Court Ruling

At 10:00 a.m. ET, the potential ruling could have a substantial impact on the US stock market, affecting over $175 billion in tariff refunds and prompting investor caution.

The GDP grew at a modest 1.4% annualized rate, significantly lower than the forecasted 3.0%, mainly due to the residual effects of the previous year's government shutdown and slowed consumer spending.

Private Equity Firms and Tech Sector Struggles

Private equity firms, including KKR & Co and Apollo Global Management, witnessed stock declines, primarily 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.

The struggles within the tech sector are a significant cause for concern, as investors become increasingly anxious about the delayed returns on investments in artificial intelligence.