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Stocks fell on Thursday, with equities unable to shake a three-week market rout under the weight of new tariff threats from President Donald Trump.
The Dow Jones Industrials cratered 429.58 points, or 1%, to 40,921.34, its fourth day of declines.
The S&P 500 sank 59.95 points, or 1.1%, to 5,539.35, and was inches away from a 10% decline from its record close in February, known as a correction on Wall Street.
The NASDAQ stumbled 249.91 points, or 1.6%, to 17,368.54, with shares in Tesla and Apple lower.
Trump took to his Truth Social platform to threaten 200% tariffs on all alcoholic products coming from countries in the European Union in retaliation for the bloc’s 50% tariff on whisky. “This will be great for the Wine and Champagne businesses in the U.S.,” he wrote.
Worries over U.S. trade policy have hurt stocks this week.
The S&P 500 is set to lose 3.3% this week, while the NASDAQ is on track for a loss of 3.7% this week. The Dow is off 3.6% in the period, heading for its worst week since March 2023.
However, investors got more encouraging inflation data Thursday. February’s producer price index — which measures the cost of producing consumer goods and is a good indicator of inflationary pressures — was flat that month, compared with an expected increase. This, alongside a softer-than-expected February consumer price index reading, may have helped ease traders’ concerns about the direction of the economy and the impact tariffs could have on inflation.
Prices for the 10-year Treasury were slightly higher early Thursday afternoon, lowering yields to 4.31% from Wednesday’s 4.32%. Treasury prices and yields move in opposite directions.
Oil prices skidded 61 to $67.62 U.S. a barrel.
Prices for gold leaped $44.60 an ounce to $2,991.42 U.S.
