U.S. stocks are tumbling following discouraging updates on inflation and how much U.S. households may be willing to spend. The S&P 500 fell 2% on Friday. The Dow Jones Industrial Average dropped 722 points, and the Nasdaq co mposite fell 2.7%. Lululemon Athletica tumbled after warning that its revenue growth may slow, in part because shoppers are spending less because of concerns about inflation and the economy. It became the latest in a line of retailers to make similar warnings. A report on Friday morning showed all types of U.S. consumers are getting more pessimistic about their future finances, including Republicans, independents and Democrats. Two out of three consumers surveyed by the University of Michigan expect unemployment to worsen in the year ahead. That's the highest reading since 2009, and it raises worries about a job market that's been the linchpin keeping the U.S. economy solid.Another report released in the morning also raised concerns after it showed that 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 treading water for the last three months, said Brian Jacobsen, chief economist at Annex Wealth Management.Households arent in a good place to absorb a little tariff pain, he said. The Fed isnt likely to run to the rescue either as inflation moved up more than expected in February.Markets could remain shaky worldwide as an April 2 deadline approaches for more tariffs. Treasury yields fell, even after a worse-than-expected report on inflation. ...read more read less