Wall Street Falls on Tariff Concerns; Nasdaq Enters Correction
Wall Street’s main indices ended Thursday in the red, driven by worries over the potential economic consequences of Donald Trump’s trade policies.
The Dow Jones Industrial Average fell 0.99% to 42,579.08 points, while the broader S&P 500 dropped 1.78% to 5,738.52 points. The Nasdaq Composite plunged 2.61% to 18,069.26 points, officially confirming a correction after two months of declines.
Investors are seeking clarity on the tariff measures imposed by Trump on major trade partners and their long-term impact. The day was marked by the temporary exemption of tariffs on products under the USMCA agreement, but uncertainty remains high.
The fog is getting thicker. We are receiving a lot of contradictory information: tariffs are on, tariffs are off, some tariffs are off.
Sector-Specific Pressures
Automakers were among the hardest hit, with General Motors dropping -2.64% and Ford down -0.41%, following a brief boost from the tariff exemption on vehicles for one month. Tesla fell -5.61% after Baird downgraded its stock to a bearish stance.
In the semiconductor sector, Marvell Technology plummeted -19.81% after disappointing quarterly results and projections. Companies like Nvidia also saw losses, down -5.74%, amid the ongoing trade tensions with China.
The growing uncertainty around tariffs, especially regarding advanced AI chip restrictions on China, is pressuring tech stocks.
Layoffs and Unemployment Claims
Initial unemployment claims fell last week to 221,000, 21,000 fewer than the previous period, despite government efforts to streamline operations under Elon Musk’s leadership.
However, layoffs surged to nearly a five-year high in February, driven in part by Musk’s efficiency measures, with 172,017 job cuts reported—a 245% increase from January, according to Challenger, Gray & Christmas.
The changing narrative on tariffs is now viewed as an obstacle to U.S. economic growth.
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