Wall Street Falls Amid U.S.-EU Trade Tensions
Wall Street extended its losses on Thursday as investors reacted nervously to escalating tariff tensions between the United States and the European Union.
The Dow Jones Industrial Average—which tracks 30 major companies—dropped 1.30% to 40,813.57 points, while the broad-market S&P 500 fell 1.39% to 5,521.52. The Nasdaq Composite saw the steepest decline, tumbling 1.96% to 17,303.01.
With this drop, the Dow Jones is now more than 10% below its recent all-time high of over 45,000 points, placing all three major Wall Street indices in correction territory amid concerns over the potential economic impact of Trump’s trade policies.
Tariff Threats Overshadow Economic Data
President Donald Trump threatened to impose a 200% tariff on European wine, champagne, and other alcoholic beverages if the EU does not lift its tariff on American whiskey—a measure introduced in retaliation for the U.S. tariffs on steel and aluminum, which took effect yesterday.
Not even weaker-than-expected U.S. producer price data could lift investor sentiment. Alongside yesterday’s lower consumer price figures, the data reinforced hopes of Federal Reserve interest rate cuts, but concerns over trade uncertainty took precedence.
Gold Hits Record High Amid Recession Fears
As investors sought safety, gold prices surged to a new all-time high of $2,985 per ounce, reflecting mounting fears of a potential U.S. recession.
Sector and Stock Performance
- The utilities sector was the only one to end in positive territory (+0.27%), while communication services (-2.67%) and consumer discretionary (-2.58%) led the declines.
- In the Dow Jones, the biggest losers were Salesforce (-4.51%) and Home Depot (-4.19%).
Key Stock Moves
- Intel (+14%) soared after announcing Lip-Bu Tan as its next CEO. The decision comes three months after the departure of Pat Gelsinger, who led an ambitious but ultimately unsuccessful restructuring effort.
- Adobe (-13.9%) plunged as its weak Q2 outlook overshadowed better-than-expected Q1 earnings.
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