The stock market experienced significant losses on Thursday as renewed trade war fears and mixed economic signals heightened concerns about the future trajectory of U.S. economic growth. The Dow Jones Industrial Average fell by over 400 points, or 1%, while the S&P 500 dropped nearly 2%. The tech-heavy Nasdaq Composite declined by more than 2.6%, officially entering correction territory as it is now more than 10% off its December record high.
The market turmoil stemmed from ongoing trade-war uncertainty, with investors anxiously watching how far President Donald Trump would extend tariffs. On Thursday, Trump announced the delay of tariffs on some Mexican and Canadian goods, which initially provided some relief. The U.S. administration had earlier paused for one month the tariffs on Mexico and Canada affecting automakers.
Tech stocks were prominently hit, dragging down the indices further. Marvell experienced a nearly 19% plunge after reporting disappointing quarterly results. Other semiconductor companies such as Nvidia, Broadcom, and AMD also saw losses.
Despite the negative market sentiment, there were some standout performances. Broadcom’s stock rallied approximately 10% in post-market trading following a better-than-expected earnings report. The company reported revenue of $14.92 billion and adjusted earnings per share of $1.60 for the first quarter, surpassing analysts’ estimates.
Market drops amid escalating tariff concerns
Gap Inc. also beat earnings expectations for the fourth quarter, signaling a potential ability to withstand the adverse effects of tariffs and poor weather conditions.
The retailer’s positive outlook for the year ahead caused its shares to rise about 8% in post-market trading. Economic data released on Thursday included weekly jobless claims, which showed 221,000 initial claims, a decrease from the previous week. This data, however, has not allayed market fears about a slowdown in U.S. economic growth.
The volatility in the market continues to echo past concerns. The S&P 500 has now seen significant intraday movements for six consecutive sessions, reminiscent of fluctuations last observed during economic growth scares in 2024. While similar past instances have not always led to a bear market, the current situation remains closely watched by investors.
Further market responses will likely hinge on the upcoming jobs report, set for release on Friday. Analysts, including Citi’s Stuart Kaiser, have indicated that the report could be a “significant risk” to the market, with anxieties particularly centered around job additions and unemployment rates. In response to the recent tariff changes, President Trump emphasized on Thursday that goods from Mexico complying with the USMCA would not be subject to tariffs until April 2.
However, he did not extend the same delay to Canadian goods, contributing to the market’s downturn late in the session.
