U.S. stocks ended sharply lower on Thursday, with the S&P 500 turning negative for the year and the Nasdaq posting its worst day in nearly a month as concerns grew after President Donald Trump threatened to impose tariffs on Canada, Mexico and China from next week. Also, investors looked forward to a key inflation report scheduled to be released on Friday.
The Dow Jones Industrial Average (DJI) fell 0.5% or 193.62 points, to close at 43,239.50 points.
The S&P 500 lost 1.6% or 94.49 points, to finish at 5,861.57 points. Tech, utilities and consumer discretionary stocks were the worst performers.
The Technology Select Sector SPDR (XLK) declined 3.6%, while the Consumer Discretionary Select Sector SPDR (XLY) dropped 1.4%. The Utilities Select Sector SPDR (XLU) slid 2.2%. Eight of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq slid 2.8% or 530.84 points to end at 18,544.42 points.
The fear-gauge CBOE Volatility Index (VIX) was up 10.63% to 21.13.
The S&P 500 and Nasdaq lost further ground on Thursday in a volatile trading session after Trump issued fresh tariff threats on Canada, Mexico and China.
Trump wrote in a post on Truth Social that the proposed 25% tariffs on Canada and China would take effect on March 4 after a month-long halt as he believes that both countries failed to take adequate steps to curb the flow of drugs over the border.
The President also said that China, which is already facing 10% tariffs, would be slapped with another 10% levy. Consumer confidence is already low as concerns have been growing over a potential global trade war owing to the new tariffs.
The fears escalated further on Thursday following Trump’s announcement, with the S&P 500 and Nasdaq on track to record their worst week since September 2024.
Tech stocks slumped on Thursday, with NVIDIA Corporation’s (NVDA) shares plummeting 8.5% although the chip giant comfortably beat earnings estimates. The company reported quarterly earnings of $0.89 per share, beating the Zacks Consensus Estimate of $0.84 per share. NVIDIA has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, the company issued a weak-than-expected quarterly forecast for gross margin, which weighed on other chipmakers. Shares of Broadcom Inc. (AVGO) and Advanced Micro Devices, Inc. (AMD) declined 7.1% and 5%, respectively.
Investors are also concerned about rising inflation, which has faded hopes of a rate cut by the Federal Reserve anytime soon. They are now awaiting the release of the all-important personal consumption expenditure (PCE) inflation reading, the Fed’s most favored inflation gauge, which will be released on Friday morning.
