Wall Street Drops Amid Inflation Data and New Tariffs: Bloomberg Money Minute

Key Inflation and Economic Data

• 📊 The PC price index for August showed a slower pace of inflation, rising 0.1% month-over-month and 2.9% year-over-year, excluding food and energy costs.
• 📈 Personal income rose 0.4% and personal spending increased by 0.6% in August, both exceeding expectations.

New Tariffs Announced

• 💰 President Trump announced a 100% tariff on branded or patented pharmaceuticals unless manufacturing plants are built in the U.S., effective next Wednesday.
• 🚚 Additional industry-specific tariffs were also introduced, targeting heavy trucks, kitchen cabinets, bathroom vanities, and upholstered furniture.

Market Reaction

• 📉 Wall Street experienced its third day of losses, influenced by the economic data and new tariff announcements.