Stocks fell sharply on Thursday as President Donald Trump confirmed new tariffs on Canada, Mexico, and China, while technology stocks, particularly Nvidia, experienced significant declines. The S&P 500 closed down 1.59% at 5,861.57, remaining in the red for the week and month. The Nasdaq Composite pulled back 2.78%, ending the day at 18,544.42, largely due to Nvidia’s 8.5% slide.
The Dow Jones Industrial Average lost 193.62 points, or 0.45%, to finish at 43,239.50. Trump announced that the proposed tariffs of 25% on Mexico and Canada will take effect on March 4 after a one-month moratorium, claiming the two countries had not sufficiently curbed the flow of drugs over the border. China, which already faces 10% tariffs from the U.S., would be subjected to an additional 10% levy.
Shares of Nvidia fell despite strong performance on the top and bottom lines and solid guidance. However, the company posted a decline in gross margins and its smallest [metric], raising questions about its ability to maintain momentum.
Nvidia slides as tariffs hit market
Economic indicators further subdued sentiment, with jobless claims for the week ending Feb. 22 coming in at 242,000, exceeding the Dow Jones estimate of 225,000. This follows several other recent reports indicating economic softening.
Traders are now looking ahead to Friday’s personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge. With two trading sessions left in February, all three major averages are set to finish lower, with the S&P 500 dropping almost 3%, while the Dow and the Nasdaq have fallen 2.9% and 5.5%, respectively. BofA’s Vivek Arya and Cantor Fitzgerald analyst C.J. Muse remain optimistic about Nvidia despite the recent downturn, citing strong demand and the company’s fast product ramp history.
Palantir is on track for another week of significant declines, with shares tumbling more than 12% this week, building on last week’s 15% drop. Cleveland Fed President Hammack commented on interest rates, indicating that rates may hold steady moving forward.
