Wall Street Sees Significant Decline Amid Trade Tensions
New York Stock Exchange experiences sharp losses as trade disputes escalate under the Trump administration.
The New York Stock Exchange closed with substantial losses on Thursday, influenced by recent developments in the trade conflict initiated by the administration of President Donald Trump.
Concerns surrounding the impact of these trade measures on U.S. economic growth have contributed to market volatility.
The Dow Jones Industrial Average dropped by 1.30%, closing at 40,813.57 points.
The tech-heavy NASDAQ index fell by 1.96%, finishing at 17,303.01 units.
Meanwhile, the S&P 500, a key benchmark for investors, decreased by 1.39%, ending at 5,521.52 points.
This decline has pushed the index into correction territory, indicating a 10% decrease from its annual peak reached on February 19.
Market analysts, including CFRA's Sam Stovall, noted that the recent threats of increased tariffs have created significant uncertainty, with potential repercussions leading to a recession.
Since returning to office in January, Trump's administration has initiated a trade offensive affecting both allies and competitors.
On Thursday, President Trump threatened France and the European Union with tariffs of up to 200% on champagne, wine, and other spirits unless the EU abandons its announced 50% tariffs on U.S. whiskey.
U.S. markets have experienced weeks of erratic trading amid uncertainty regarding tariffs.
Stovall commented on the ambiguity surrounding the extent of the impending trade measures, stating, "The problem is that we do not know exactly how far this will go."
Despite positive inflation data in the U.S., investors have largely overlooked these figures, focusing instead on growth indicators tied to trade policies.
In the bond market, yields on ten-year U.S. government bonds decreased to 4.27%, down from 4.31% the previous day.
The technology sector also faced declines, with major companies known as the 'Magnificent Seven' all reporting losses: Tesla decreased by 2.99%, Alphabet by 2.53%, Amazon by 2.51%, Meta by 4.67%, Apple by 3.36%, Microsoft by 1.17%, and Nvidia by 0.15%.
Additionally, software company Adobe experienced a notable drop of 13.85%, despite reporting better-than-expected earnings.
Concerns surrounding the impact of these trade measures on U.S. economic growth have contributed to market volatility.
The Dow Jones Industrial Average dropped by 1.30%, closing at 40,813.57 points.
The tech-heavy NASDAQ index fell by 1.96%, finishing at 17,303.01 units.
Meanwhile, the S&P 500, a key benchmark for investors, decreased by 1.39%, ending at 5,521.52 points.
This decline has pushed the index into correction territory, indicating a 10% decrease from its annual peak reached on February 19.
Market analysts, including CFRA's Sam Stovall, noted that the recent threats of increased tariffs have created significant uncertainty, with potential repercussions leading to a recession.
Since returning to office in January, Trump's administration has initiated a trade offensive affecting both allies and competitors.
On Thursday, President Trump threatened France and the European Union with tariffs of up to 200% on champagne, wine, and other spirits unless the EU abandons its announced 50% tariffs on U.S. whiskey.
U.S. markets have experienced weeks of erratic trading amid uncertainty regarding tariffs.
Stovall commented on the ambiguity surrounding the extent of the impending trade measures, stating, "The problem is that we do not know exactly how far this will go."
Despite positive inflation data in the U.S., investors have largely overlooked these figures, focusing instead on growth indicators tied to trade policies.
In the bond market, yields on ten-year U.S. government bonds decreased to 4.27%, down from 4.31% the previous day.
The technology sector also faced declines, with major companies known as the 'Magnificent Seven' all reporting losses: Tesla decreased by 2.99%, Alphabet by 2.53%, Amazon by 2.51%, Meta by 4.67%, Apple by 3.36%, Microsoft by 1.17%, and Nvidia by 0.15%.
Additionally, software company Adobe experienced a notable drop of 13.85%, despite reporting better-than-expected earnings.
