Stocks tumbled on Thursday, extending a three-week market downturn as investor sentiment remained pressured by new tariff threats from President Donald Trump.
The sell-off pushed major indices deeper into correction territory, with the S&P 500 dropping 1.39% to close at 5,521.52, now down 10.1% from its record high.
The Dow Jones Industrial Average fell 537.36 points, or 1.3%, marking its fourth consecutive decline and finishing at 40,813.57.
The Nasdaq Composite was the worst performer, shedding 1.96%, with Tesla and Apple among the biggest losers.
The losses have accelerated this week, with the S&P 500 and Nasdaq down 4.3% and 4.9%, respectively, since Monday.
The Dow has lost 4.7% over the same period, putting it on pace for its worst weekly performance since June 2022.
The Nasdaq has been in correction territory since earlier this month, now sitting more than 14% below its recent record high.
Meanwhile, the small-cap Russell 2000 index is nearing a bear market, having declined roughly 19% from its peak.
Wall Street defines a correction as a decline of 10% or more from recent highs, while a bear market is a drop of 20% or more.
Trump’s tariff threats scare investors
The decline comes as President Trump reiterated his intention to impose aggressive trade policies.
On Thursday morning, he announced on Truth Social that he plans to implement 200% tariffs on all alcoholic beverages imported from European Union countries in response to the bloc’s 50% tariff on whisky.
“This will be great for the Wine and Champagne businesses in the US,” the president wrote.
Later in the day, he reaffirmed that a broader set of tariffs is still scheduled to take effect on April 2.
Investor anxiety over Trump’s trade policy has weighed heavily on markets this month, with concerns that escalating tensions could weaken corporate earnings and consumer confidence.
There have also been growing fears that the policies may push the US economy into a recession.
Despite the market turmoil, Treasury Secretary Scott Bessent downplayed concerns, stating that the Trump administration is prioritizing long-term economic stability over short-term volatility.
“I’m not concerned about a little bit of volatility over three weeks,” he said in an interview on CNBC.
Big movers on Thursday
On Thursday, the AAPL stock slumped around 3%.
Apple shares have tumbled more than 12% this week, setting the stage for their worst weekly performance since March 2020.
The stock is now trading at its lowest level since August 2024, having declined in 11 of the past 13 sessions.
Fellow tech giant Adobe also saw its shares plunge 14% following the company’s quarterly earnings report, as investors remained concerned about its growth outlook and artificial intelligence monetisation strategy.
The sell-off came despite better-than-expected results, with adjusted earnings of $5.08 per share on revenue of $5.71 billion, surpassing analysts’ expectations of $4.97 per share and $5.66 billion in revenue, according to LSEG.
President Trump’s threat to impose a 200% tariff on wines, champagnes, and other alcoholic beverages from France and the wider EU triggered a sharp sell-off in European alcohol stocks, with shares of French spirits makers Pernod Ricard and Rémy Cointreau, as well as Italy’s Davide Campari, all dropping around 4%.
Intel shares bucked the general trend on Thursday. The INTC stock surged on Thursday after the company announced that Lip-Bu Tan, former CEO of Cadence Design Systems, will take over as its chief executive on March 18.
Bank of America responded to the news by upgrading Intel to Neutral from Underperform.
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