Trump's Tariff Turmoil: Stock Market in a Spin

Stocks in the US took a hit on Thursday, with all three major indexes finishing lower. The Nasdaq, in particular, found itself in correction territory, down 10% from its December high. This wasn't the only bad news for investors. The Dow and S&P 500 are having their worst week since September 2024 and March 2023, respectively. Investors are feeling the pressure of uncertainty from the administration's trade policies. The Dow Jones Industrial Average ended the day down 428 points, or 0. 99%. The S&P 500 fell by 1. 78%, and the Nasdaq Composite slid by 2. 61%. The Nasdaq closed in correction territory, down 10% from its record high in December. The Dow is down almost 3% on the week, on track for its worst week since March 2023. The S&P 500 and Nasdaq are both on pace for their worst week since September 2024. The market has been struggling during Trump's presidency, largely due to the uncertainty surrounding trade policies. The Nasdaq has fallen more than 7% since Trump took office, and the S&P 500 is down more than 4%. The uncertainty around tariffs is taking a toll on investor sentiment. Rob Haworth, a senior investment strategist at US Bank Wealth Management, warned that this uncertainty will eventually weigh too heavily on business decisions and future earnings growth. Economic data released earlier in the day showed a significant increase in job cuts. US-based employers announced plans to cut 172, 017 jobs in February, a 103% increase from January and the highest February total since 2009. This news sent futures tied to the Dow tumbling in early trading.

The tech sector also faced challenges. Companies focused on artificial intelligence posted mixed earnings results and guidance for the year. Marvell Technologies, a chipmaker, saw its stock fall by nearly 20%. Nvidia and Palantir also slid, dragging the Nasdaq lower. Chinese tech giant Alibaba announced its own AI model, challenging competitors and raising questions about the AI boom in the US. The market's decline on Thursday was a reversal of Wednesday's rally, highlighting investors' lack of clarity and confidence about the trade war between the US and its biggest trading partners. Jeffrey Roach, chief economist at LPL Financial, warned that tariff-induced inflation amid slower growth could bring the economy dangerously close to stagflation. The US dollar index, which measures the dollar's strength relative to six other currencies, fell to its lowest level since November, signaling a weakening outlook for US economic growth. Investors are closely watching the government's monthly jobs report, set to be released by the Bureau of Labor Statistics at 8:30 a. m. ET on Friday. This report will give investors more insight into the economy's health. The market has been driven by "extreme fear" for the past week, according to CNN's Fear and Greed Index. This fear is likely due to the uncertainty surrounding trade policies and the recent economic data.

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