NEW YORK — 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. If it does, it would be the fifth losing week in the last six for the index.

The Dow Jones Industrial Average was down 263 points, or 0.6%, as of 9:55 a.m. Eastern time, and the Nasdaq composite was 0.7% lower.

Lululemon Tumbled 13.3%

Lululemon Athletica tumbled 13.3% to help lead the market lower, even though the seller of athletic apparel reported a stronger profit for the latest quarter than analysts expected. It warned that its revenue growth may slow this upcoming year, in part because “consumers are spending less due to increased concerns about inflation and the economy,” said CEO Calvin McDonald.

Lululemon also said tariffs and shifting foreign-currency values may account for about half its expected decline in a key measure of performance: how much profit it can squeeze out of each $1 of revenue.

Oxford Industries, the company behind the Tommy Bahama and Lilly Pulitzer brands, likewise reported stronger results for the latest quarter than expected but still saw its stock fall 3.3%. CEO Tom Chubb said it saw a “deterioration in consumer sentiment that also weighed on demand” beginning in January, which accelerated into February.

They’re discouraging data points when one of the main worries hitting Wall Street is that President Donald Trump’s trade war may cause U.S. households and businesses to freeze their spending. Even if the tariffs end up being less painful than feared, all the uncertainty may filter into changed behaviors that hurt the economy.

A report released in the morning also raised concerns after it showed a widely followed, underlying measure of inflation was a touch worse last month than economists expected. The data followed reports on other measures of inflation for the month, but this one is what the Federal Reserve tracks most closely as it decides what to do with interest rates.

The report also showed that an underlying measure of how much income Americans are making, which excludes government social benefits and some other items, “has been trading water for the last three months,” said Brian Jacobsen, chief economist at Annex Wealth Management.

“Households aren’t in a good place to absorb a little tariff pain,” he said. “The Fed isn’t likely to run to the rescue either as inflation moved up more than expected in February.”

The Fed has been keeping its main interest rate on hold this year after cutting it sharply in late 2024, in part because of worries about inflation remaining higher than its 2% target. While more cuts to interest rates would give the economy and financial markets a boost, they would also put upward pressure on inflation.

Stock Markets Worldwide Remain Shaky

Stock markets worldwide will likely remain shaky as an April 2 deadline approaches for more tariffs. That’s what Trump has called “Liberation Day,” when he will roll out tariffs tailored to the United States’ trading partners. In each case, he said the “reciprocal” tariff will match the burden the other country places on the United States, including things like value-added taxes.

Still, gains for some stocks in the artificial-intelligence industry were helping to keep Wall Street’s losses in check. Super Micro Computer, which sells servers used in AI, rose 1.1%. Power companies hoping to electrify vast AI data centers also climbed, including rises of 1.4% for Vistra and 2% for Constellation Energy.

Nvidia, the chip company that’s become the poster child of the AI frenzy, edged up by 0.1%. AI stocks have been at the center of Wall Street’s recent sell-off because critics were saying their prices had risen so much faster than their already rapidly growing profits that they became too expensive. But their recent tumbles have made them not quite so expensive relative to the rest of the U.S. market.

In stock markets abroad, indexes fell sharply in Japan and South Korea as auto makers felt more pressure following Trump’s announcement he plans to impose 25% tariffs on auto imports. South Korea’s Hyundai Motor fell 2.6% in Seoul, while Honda Motor fell 2.6%, and Toyota Motor sank 2.8% in Tokyo.

Thailand’s SET lost 1% after a powerful earthquake centered in Myanmar rattled the region, causing the prime minister to declare a state of emergency for the capital, Bangkok.

In the bond market, the yield on the 10-year Treasury fell to 4.29% from 4.38% late Thursday.