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The S&P 500 fell during a volatile session, after President Donald Trump’s declaration that tariffs on Canada and Mexico would proceed as planned, as well as a negative reversal in bellwether stock Nvidia following earnings.
The Dow Jones Industrials shed earlier gains and ended Thursday down 184.37 points to 43,248.75,
The much-broader index declined 94.37 points, or 1.6%, to 5,861.69, to remain in the red for the week and month.
The NASDAQ Composite crumbled 530.84 points, or 2.8%, to 18,544.42, with Nvidia’s 4.2% decline pulling the tech-heavy index lower.
With just two trading sessions left in February, all three major averages are on pace to finish lower. The broad market index has dropped 1.4%, while the Dow and the NASDAQ have declined more than 2% each.
In a post on Truth Social, Trump announced the proposed tariffs of 25% on Mexico and Canada will take effect on March 4 after the one-month moratorium ends.
Trump claimed hat the two countries had yet to curb the flow of drugs over the border by enough. The president also stated that China, which already faces 10% tariffs from the U.S., would face an additional 10% levy.
Shares of Nvidia declined even after the chip giant exceeded fourth-quarter estimates on the top and bottom lines. The AI play also issued strong guidance, reflecting continued demand driven by the artificial intelligence race.
However, the company’s posted a decline in grows margin for the quarter and its smallest revenue beat in two years, raising questions about whether the bull market leader could keep its momentum going.
Besides Trump’s tariff declaration, a jump in jobless claims also subdued sentiment, adding to recent concerns of economic softening. Jobless claims for the week ending Feb. 22 came in at 242,000.
This was up 22,000 from the previous week’s revised level and higher than the Dow Jones estimate for 225,000, according to a Labor Department report Thursday.
Prices for the 10-year Treasury gained a bit, lowering yields to Wednesday’s 4.28%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.57 to $70.19 U.S. a barrel.
Prices for gold faded $44.90 an ounce to $2,885.70 U.S.
