Dow drops 427 points, Nasdaq enters correction, and S&P 500 hits lowest level since early November
On Thursday, stocks continued their sharp decline as investors reacted to US tariff policies despite White House concessions, according to CNBC.
The Dow Jones Industrial Average dropped 427.51 points, or 0.99 percent, closing at 42,579.08 after falling over 600 points earlier in the session.
The S&P 500 declined 1.78 percent to 5,738.52, while the Nasdaq Composite fell 2.61 percent to 18,069.26, officially entering correction territory with a 10 percent drop from a recent high.
The market downturn followed new US tariffs on imports from Canada, Mexico, and China, which took effect this week. Canada and China responded with retaliatory levies, while Mexico announced plans to introduce countermeasures over the weekend.
The Nasdaq has declined over 4 percent this week, while the Dow and S&P 500 are down approximately 2.9 percent and 3.6 percent, respectively, putting them on track for their worst week since September 2024.
Markets attempted a recovery on Wednesday after the White House delayed tariffs for one month on automakers that comply with the United States-Mexico-Canada Agreement (USMCA).
Investors hoped for further rollbacks, which could lessen the economic impact. However, selling resumed on Thursday as uncertainty persisted.
Trump announced an additional one-month extension for tariffs on Canadian and Mexican goods that meet USMCA standards, but the news failed to provide the same boost as the prior session.
Investor confidence eroded further when Treasury Secretary Scott Bessent defended the tariff policies, casting doubt on the administration’s willingness to compromise.
Speaking at an Economic Club of New York event, Bessent stated, “To the extent that another country’s practices harm our own economy and people, the United States will respond. This is the America-first trade policy.”
His remarks raised concerns over how aggressively the White House intends to enforce trade restrictions.
Bessent also criticized Canadian Prime Minister Justin Trudeau, calling him a “numbskull,” and emphasized that the administration prioritizes Main Street over Wall Street.
The S&P 500 reached its lowest level since early November during Thursday’s session.
Confusion over shifting trade policies continues to impact market sentiment, said Keith Lerner, chief market strategist at Truist.
“You’re just having confusion,” he said. “That confusion is permeating into the day-to-day swings of the market.”
The ongoing sell-off in artificial intelligence stocks also dragged markets lower.
Marvell Technology shares fell nearly 20 percent after issuing mixed first-quarter guidance. Other semiconductor companies, including ON Semiconductor, Taiwan Semiconductor, and Nvidia, also posted declines.
Economic reports released Thursday signaled additional risks to the US economy.
The Federal Reserve’s Beige Book and the Institute for Supply Management’s manufacturing index warned of rising input costs due to tariffs.
Meanwhile, data from Challenger, Gray & Christmas showed that layoff announcements reached their highest levels since 2020. The outplacement firm linked the surge to Trump and billionaire Elon Musk’s efforts to reduce the federal workforce.
With Friday’s US jobs report approaching, investors remain on edge as markets react to shifting trade policies and economic uncertainty.
