Major United States averages closed lower on Thursday (Friday AEDT) as investor concerns over trade policy uncertainty fueled a broad sell-off.
The Dow Jones Industrial Average dropped 427.5 points or 1%, the S&P 500 lost 104.1 points or 1.8% to 5,738.5, while the Nasdaq Composite slid 483.5 points or 2.6% to close at 18,069.3, pushing it 10% lower from recent highs and into correction territory.
The market turmoil followed the implementation of new U.S. tariffs on Canadian, Mexican, and Chinese imports earlier this week, prompting swift retaliation from Canada and China. Mexico also signalled plans to introduce countermeasures over the weekend.
As a result, the Nasdaq has fallen over 4% this week, while the Dow and S&P 500 have dropped around 3.1% and 3.8%, respectively.
Investors had hoped for relief after the White House announced a one-month delay on tariffs for automakers complying with the United States-Mexico-Canada Agreement (USMCA), which briefly spurred a recovery rally on Wednesday. However, further policy uncertainty dampened market sentiment on Thursday.
President Donald Trump extended tariff exemptions for additional Canadian and Mexican goods under USMCA, but the move failed to reassure investors.
Adding to the unease, Treasury Secretary Scott Bessent defended the administration’s tariff strategy, raising concerns over the extent of potential compromises. The conflicting policy signals left investors wary of prolonged uncertainty.
A sharp pullback in artificial intelligence-related stocks further pressured the market. Chipmaker Marvell Technology fell more than 19.8% after issuing mixed first-quarter guidance, while ON Semiconductor, Taiwan Semiconductor, and Nvidia declined 5.6%, 4.5%, and 5.7%, respectively.
Investors now turn their attention to Friday’s closely watched nonfarm payrolls data, which could further shape market expectations on economic resilience amid ongoing trade tensions.
On the bond markets, 10-year and 2-year rates were 0.1% and 1.1% lower at 4.278% and 3.963%, respectively.
