US stock markets plunged significantly on Friday due to a combination of concerns ranging from tariffs to persistent inflation and weakening consumer spending. The tech sector, a vital component of the market, faced intensified selling pressure, with prominent tech companies like Nvidia Corp. and Palantir Technologies Inc. experiencing sell-offs alongside other profitless tech firms. The S&P 500 Index dropped by 1.8%, with most industries experiencing losses, while the Nasdaq 100 Index witnessed a sharper decline of 2.4%. Both indices have seen declines of at least 6% in March, heading towards their worst quarterly performances since 2022. Additionally, Treasury yields fell to 4.27%, and the price of gold rose to approximately $3,118 per ounce.

Investors have been shifting away from tech giants that drove substantial gains in the past two years and redirecting investments towards safer sectors such as utilities and healthcare. Recent reports, notably one from TD Cowen identifying Microsoft Corp.'s withdrawal from certain data center projects, have negatively impacted the tech sector. Alibaba Group Holding Ltd. co-founder Joe Tsai also cautioned about excessive spending on computing infrastructure potentially leading to a market bubble. Notably, several of the worst-performing stocks in the S&P 500 are associated with the artificial intelligence market.

Concerns around the economy escalated as data showed persistently high inflation rates, lower-than-expected consumer spending, and ongoing trade tensions fueled by President Donald Trump. The current market turmoil reflects a culmination of issues that investors are apprehensive about after a period of rapid growth, underscoring worries about the economic outlook.