Inflation is headed in the wrong direction and Americans have grown more cautious about how much they spend — not a good omen for the U.S. economy.

An inflation gauge closely watched by the Federal Reserve remained high last month even before the impact of most tariffs has been felt.

It also didn’t help that the latest data showed US consumer sentiment tumbled to a more than two-year low while long-term inflation expectations jumped to a 32-year high as American anxiety over Trump’s handling of the economy continues to build.

Wall Street stocks ended sharply lower on Friday, with selloffs in Amazon, Microsoft and other technology heavyweights, after U.S. data stoked fears of weak economic growth and high inflation as the Trump administration ratchets up tariffs.

U.S. stock indexes are slipping Friday following potentially discouraging updates on inflation and how much U.S. households may be willing to spend. The S&P 500 was down 0.5% in morning trading and potentially on track to erase the last of what had been a winning week.