Stocks plummet due to Trump's tariff threats on Canada, Mexico, and China

From Nasdaq: 2025-02-28 09:28:00

U.S. stocks plummeted on Thursday, with the S&P 500 and Nasdaq facing significant losses due to Trump’s tariff threats on Canada, Mexico, and China. The Dow fell 0.5%, S&P 500 dropped 1.6%, and Nasdaq slid 2.8%. Tech stocks, including NVIDIA, suffered despite beating earnings estimates. Investors are wary of rising inflation and await key economic data.

Trump’s proposed 25% tariffs on Canada and China, set to take effect on March 4, led to further market declines. The S&P 500 and Nasdaq are on track for their worst week since September 2024. Consumer confidence is low amid fears of a global trade war. Tech stocks, like NVIDIA, slumped despite strong earnings.

The fear of a trade war and rising inflation weighed on the market, causing tech stocks to suffer. NVIDIA’s shares dropped 8.5% despite beating earnings estimates. Other chipmakers like Broadcom and AMD also saw declines due to a weak forecast. Investors await the release of the PCE inflation reading for further insights on the economy.

Economic data released on Thursday showed an increase in jobless claims and a decline in pending home sales. The U.S. GDP grew by 2.3% in the fourth quarter of 2024, meeting analysts’ expectations. The stock market remains volatile amid uncertainties surrounding trade tensions, inflation, and economic indicators.

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Read more at Nasdaq: Stock Market News for Feb 28, 2025