(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

US consumer spending rises in February

*

US core inflation firmer in February

*

Bullion miners track higher gold prices

*

Lululemon shares slide after bleak annual outlook

*

Futures off: Dow 0.26%, S&P 500 0.36%, Nasdaq 0.50%

(Updates before markets open)

By Pranav Kashyap and Johann M Cherian

March 28 (Reuters) -

Wall Street's main indexes were poised for a lower open on

Friday as data showed underlying price pressures rose more than

expected last month and fueled concerns that the Trump

administration's tariff policies could further stoke inflation.

A

Commerce Department report

showed the Personal Consumption Expenditures Price index

rose in line with what economists polled by Reuters were

expecting.

However, excluding volatile items such as food and

energy, the index rose 2.8% on an annual basis in the previous

month, more than forecasts of a 2.7% increase, while consumer

spending rebounded after falling in January.

Equities have witnessed sharp declines over the past one

month on expectations that President Donald Trump's policies

could tip the economy into a period of high inflation and tepid

growth, which could also cloud the Federal Reserve's monetary

policy trajectory.

"This data further lends credence to the marginal shift

we're seeing towards a more stagflationary environment," said

Jordan Rizzuto, chief investment officer at GammaRoad Capital

Partners.

"If inflation is picking up or running hotter coming

into a period before we've actually seen the impact from

tariffs, that's rather concerning."

Traders continue to expect the central bank to lower

borrowing costs by 25 basis points for the first time this year

in July, according to data compiled by LSEG.

Rate-sensitive banks such as JPMorgan Chase ( JPM ) and

Wells Fargo ( WFC ) slipped 0.6% each, while megacaps including

Apple ( AAPL ) declined 0.9% and Meta lost 0.5%.

Yields on Treasury were largely unchanged after an

initial spike, reflecting a sense of caution among investors.

Trump's decision to forge ahead with a 25% tariff on auto

imports - set to take effect next week have sent shockwaves

through global markets, inciting backlash from lawmakers and

industry leaders worldwide.

Auto stocks bore the brunt of the selloff in the previous

session. In premarket activity, General Motors ( GM ) dipped

0.8%, while Ford edged 0.2% lower.

Attention is now firmly on a fresh round of tariffs the

U.S. plans to unveil on April 2. Trump hinted that these

measures might not be the straightforward tit-for-tat levies he

has previously vowed to impose.

At 8:52 a.m. ET, Dow E-minis were down 110

points, or 0.26%, S&P 500 E-minis were down 20.5 points,

or 0.36% and Nasdaq 100 E-minis were down 99 points, or

0.50%.

Economic uncertainty as a consequence of tariffs have also

forced companies to lower their annual forecasts, with Lululemon

Athletica ( LULU ) being the latest to do so. Shares of the

sportswear maker slid 11.3%.

Gold prices scaled yet another peak due to ongoing

uncertainty on the tariff front, sending miners of the yellow

metal such as Harmony Gold and Gold Fields up

about 4.6% each.

The S&P 500 and the Nasdaq have fallen by 10%

from their respective record highs, thus entering technical

correction territory earlier in the month.

The S&P 500 is facing its first quarterly setback in six

quarters, while the tech-laden Nasdaq braces for its most

significant quarterly dip in nearly two years.

Investors will also parse through speeches by Federal

Reserve policymakers Michael Barr and Raphael Bostic later in

the day.

U.S. Steel rose 4.7% after a report said Nippon Steel ( NISTF )

and the company are in active talks about a deal that

would preserve their $14 billion merger.