The initial stock market rally following President Trump’s election has faded by late February, with investor concerns growing over the administration’s policies and weaker consumer sentiment. Stocks initially surged on expectations of deregulation and tax cuts, which were anticipated to boost economic growth. However, recent anxieties about inflation due to new tariffs have stalled this momentum. Additionally, a downturn in technology stocks weighed on the broader market. By midday Friday, the S&P 500 was on track for its worst week of the year, declining about 2 percent, with a monthly drop of 2.5 percent. The pullback was partly driven by renewed fears about inflation from sweeping tariffs imposed on China and proposed for Canada and Mexico. Investors’ expectations of Federal Reserve interest rate cuts have shifted amid concerns that inflation will persist longer than anticipated. With rates expected to remain high, worries have extended to the broader economic impact. — news from The New York Times
