New York
CNN
—
The rocky week on Wall Street continues.
US stocks slid Thursday as investors and businesses grappled with the uncertainty of President Donald Trump’s tariffs. Trump on Thursday announced a nearly one-month tariff delay on all products from Mexico that are covered by the USMCA free trade treaty, a significant reversal of the administration’s initial plan.
Commerce Secretary Howard Lutnick said on CNBC Thursday morning that Trump would likely announce later in the day a one-month tariff delay on all products that are covered by the USMCA free trade treaty, signaling Canada could potentially get a reprieve too.
Stocks, which opened sharply lower, pared some losses after Lutnick’s comments but remained in the red and tumbled after Trump’s announcement.
The Dow fell 600 points, or 1.42%, to its lowest level of the day during midday trading. The broader S&P 500 fell 2% and the Nasdaq Composite slid 2.56%.
As of midday Thursday, the Dow is down more than 3% on the week. That leaves it on track for its worst week since the week ending March 10, 2023, when it fell 4.44%.
The market is in the red during Trump’s presidency in part because of the uncertainty the administration’s trade policy has caused. The Nasdaq has fallen more than 7% since Trump took office, and the S&P 500 is down more than 4%.
Also in investors’ focus: recent data revealing the extent of recent layoffs and renewed concerns about spending on artificial intelligence.
Futures tied to the Dow had tumbled in early trading as new economic data showed unease in the labor market. US-based employers last month announced plans to slash 172,017 jobs, a 103% increase from January and the highest February total since 2009, according to Challenger, Gray & Christmas’s latest monthly job cuts report.
Futures tied to the Nasdaq 100 also fell in early trading as companies focused on the AI trade posted mixed earnings results and guidance for this year. Marvell Technologies (MRVL), a chipmaker, fell 18% in early trading and opened sharply lower.
Nvidia (NVDA) and Palantir (PLTR) also slid, dragging the Nasdaq lower.
Chinese tech giant Alibaba on Thursday announced its own AI model, challenging upstart DeepSeek as well as OpenAI, raising questions about whether the AI boom in the US is worth the money that is being poured into it.
Thursday’s decline is a reversal of the rally on Wednesday afternoon, highlighting that investors lack clarity and confidence about the next developments in the brewing trade war between the US and its biggest trading partners.
“For now, tariff-induced inflation amid slower growth could bring the economy dangerously close to stagflation,” said Jeffrey Roach, chief economist at LPL financial, in a note Wednesday.
Investors will be closely attuned to the government’s monthly jobs report Friday, set to be released by the Bureau of Labor Statistics at 8:30 a.m. ET. and giving investors more insight about how the economy is doing.
“Extreme fear” has been the sentiment driving investors for the past week, according to CNN’s Fear and Greed Index.
This is a developing story and will be updated.
CNN’s David Goldman contributed reporting
