The Nasdaq Composite fell 1.2% on Friday as investor sentiment soured amid renewed inflation fears and trade policy uncertainty. A University of Michigan survey revealed that U.S. consumers now expect inflation to rise to 4.3% over the next year, the highest level since 2023. The unexpected uptick in inflation expectations rattled markets, fueling volatility and triggering sell-offs across the Nasdaq, Dow, and S&P 500.
Tech Stocks Struggle Amid Earnings Reports
Earnings season added to market uncertainty. Amazon’s stock fell nearly 4% after issuing a revenue forecast that missed Wall Street expectations, despite a strong fourth-quarter performance. Meanwhile, Pinterest surged 17% following an upbeat first-quarter sales outlook, while Uber jumped 8.9% after billionaire investor Bill Ackman revealed a significant stake in the company (source: Investors).
Trump Pushes for Reciprocal Tariffs
President Donald Trump reignited trade tensions by announcing plans for reciprocal tariffs on countries that impose duties on U.S. exports. Speaking at a press conference, he stated:
“I’ll be announcing that, next week, reciprocal trade, so that we’re treated evenly with other countries.”
His remarks came during a meeting with Japanese Prime Minister Shigeru Ishiba, where he reiterated the potential for auto tariffs on Japan. Additionally, Trump signed an executive order imposing a 10% tariff on select Chinese imports, targeting low-cost packages previously exempt under the “de minimis” rule. However, the Commerce Department has delayed enforcement as it finalizes regulations (source: Reuters).
Nasdaq Price Action: Key Levels and Market Reaction
Friday’s Asian and European sessions remained tightly range-bound, as traders adopted a cautious stance ahead of the highly anticipated Non-Farm Payrolls (NFP) release. Price fluctuated between 21,807 and 21,899, reflecting a market in wait-and-see mode ahead of key economic data.
Whipsaw Reaction to Mixed NFP Data
The NFP release triggered initial whipsaw action as traders reacted to a mixed report. While payroll numbers fell short of expectations, strong wage growth added to the uncertainty, leaving investors grappling with its broader implications. This indecision fuelled sharp fluctuations ahead of the U.S. session open.
Wall Street Opens Amid Volatility and Tariff Fears
As Wall Street opened, price briefly surged to retest last Friday’s highs but quickly came under selling pressure, plunging below 21,711 – the prior session’s low. A recovery attempt was underway until unexpected market news broke: Donald Trump signalled plans for additional tariffs. The market reacted swiftly, with price tumbling 170–180 points amid escalating geopolitical uncertainty.
At the time of writing, price is hovering around the weekly VWAP, consolidating within last week’s value area. Despite recent volatility, the broader market structure remains range-bound on higher timeframes, with traders awaiting the next catalyst for a decisive move.
