S&P 500 enters correction as stocks plummet amid Trump’s tariff threats, marking a challenging week for Wall Street.
In Short
Stocks plunged on Thursday, with the S&P 500 down 1.39% and entering correction territory, while the Dow and Nasdaq also fell significantly. Market uncertainty continues due to President Trump’s tariff threats, leading to losses predicted for the week across major indices.
Stocks fell sharply on Thursday as the S&P 500 entered correction territory, dropping 1.39% to close at 5,521.52.
The decline marked a significant downturn where the index sits 10.1% below its record high. The Dow Jones Industrial Average also suffered, losing 537.36 points or 1.3%, closing at 40,813.57, marking its fourth consecutive day of losses. Meanwhile, the Nasdaq Composite fell 1.96%, with major players like Tesla and Apple being negatively affected.
Tariff threat
The market’s downward trend has been exacerbated by recent tariff threats from President Trump. He proposed 200% tariffs on EU alcoholic products in response to a 50% EU tariff on whisky, indicating a firm stance on expanding trade restrictions.
Investor confidence has been shaken by his unpredictable trade policies, contributing to a week where the S&P 500 and Nasdaq are projected to post losses of 4.3% and 4.9%, respectively. The Dow is on track for a 4.7% decline, potentially experiencing its worst week since June 2022.
Small-cap stocks are also suffering, with the Russell 2000 nearing bear market conditions, down approximately 19% from its peak. Portfolio managers express concern that ongoing tariff disputes continue to foster market uncertainty.
Despite some positive signs in inflation data, analysts doubt a significant market rebound is likely, as worries about Trump’s trade approach remain a critical concern for investors.
