S&P Works Way Down Toward Correction Territory
March 13,2025 04:35 pm EST
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 crumbled 537.36 points, or 1.3%, to 40,813.57, its fourth day of declines.
The S&P 500 sank 77.78 points, or 1.4%, to 5,521.52, bringing its losses from its record close in February to 10%. If the benchmark closes at these levels, it will be an official market correction, according to Wall Street.
The NASDAQ stumbled 345.44 points, or 2%, to 17,303.01, with shares in Tesla and Apple lower. The tech-heavy index was already well into correction territory heading into Thursday's session and now sits more than 14% below its recent record.
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 gained Thursday, lowering yields to 4.26% from Wednesday's 4.32%. Treasury prices and yields move in opposite directions.
Oil prices $1.04 to $66.64 U.S. a barrel.
Prices for gold leaped $49.90 an ounce to $2,996.10 U.S.
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