The U.S. stock market experienced significant declines last week, influenced by a confluence of economic concerns and policy developments.Investor's Business Daily

Market Performance:

• The S&P 500 fell 1.97% to 5,580.94.

• The Nasdaq Composite dropped 2.70% to 17,322.99.

• The Dow Jones Industrial Average decreased 1.69% to 41,583.90. 

Key Factors Influencing the Market:

• Tariffs and Trade Tensions: The announcement of a 25% tariff on auto imports, along with broader levies anticipated next week, has heightened fears of a trade war, particularly impacting the auto industry. 

• Inflation Concerns: The personal consumption expenditures index rose by 0.4% in February, surpassing the Federal Reserve's 2% target. This unexpected increase has fueled worries about persistent inflation. 

• Consumer Confidence: The University of Michigan's consumer confidence index has declined, reflecting growing recession fears and concerns over inflation.

• Tech Sector Sell-Off: Major technology stocks, including NVIDIA and Broadcom, have experienced significant sell-offs. NVIDIA's stock, for instance, has declined over 20% from its all-time high. 

Given these factors, investors are grappling with whether to "buy the dip" or anticipate further market declines. While some view the current downturn as a buying opportunity, others caution that ongoing trade tensions and inflationary pressures could lead to continued volatility. It's advisable for investors to assess their risk tolerance and consider a diversified approach in light of the current economic landscape.

Sources: Reuters, Yahoo Finance, The Australian