Major United States benchmark averages tumbled on Thursday (Friday AEDT) as investors reacted to President Donald Trump’s confirmation that tariffs on Canada and Mexico would proceed.
The Dow Jones Industrial Average shed 193.6 points, or 0.5%, ending the session at 43,239.5. The S&P 500 dropped 1.6% to close at 5,861.6, remaining in negative territory for the week and month, while the Nasdaq Composite saw a steeper decline, falling 2.8% to 18,544.4.
Market sentiment took a hit after Trump reiterated on Truth Social that his administration would move forward with a 25% tariff on imports from Canada and Mexico starting March 4.
Additionally, the president announced that China, already facing 10% U.S. tariffs, would be subject to an additional 10% levy.
Nvidia, a key market driver, plunged despite posting stronger-than-expected fourth-quarter earnings.
Beyond trade tensions, signs of economic weakness added to investor anxiety. Weekly jobless claims rose to 242,000, up 22,000 from the prior period and exceeding estimates of 221,000, while GDP growth slowed to 2.3% in Q4, largely in line with expectations.
Market participants are now looking ahead to Friday’s monthly personal consumption expenditures price index - the Federal Reserve’s preferred inflation gauge.
On the bond markets, 10-year yields were up 0.3% to 4.268% while 2-year rates eased 0.4% to 4.059%.
