Stocks plummet to 6-month lows due to escalating trade tensions but labor market shows strength.

From Nasdaq: 2025-03-13 18:21:58

Stock indexes, including the S&P 500, Dow Jones, and Nasdaq 100, closed down on Thursday to 6-month lows due to escalating trade tensions. President Trump threatened increased tariffs on EU alcohol products and reiterated plans for reciprocal tariffs. Weekly jobless claims unexpectedly fell, supporting a stronger labor market.

Positive US economic news showed strength in the labor market and easing price pressures. Weekly jobless claims unexpectedly declined, while Feb producer prices rose less than expected. Stocks faced pressure over fears of US tariffs impacting economic growth and corporate earnings, with President Trump imposing tariffs on Canadian, Mexican, and Chinese goods.

Market focus remains on US trade policies, with the University of Michigan’s March consumer sentiment index expected to decline. The chances of a rate cut at the next FOMC meeting are discounted at 1%. Overseas stock markets closed lower, and interest rates reacted to the news, with T-notes initially moving lower before recovering.

European bond yields fell, and Eurozone industrial production rose higher than expected. ECB officials expressed confidence in achieving price stability. Swaps are pricing in a 50% chance of a rate cut by the ECB in April. US stock movers include companies like Meta Platforms, Apple, and Tesla, with some stocks experiencing significant losses.

Adobe and UiPath forecasted weaker earnings, leading to significant stock declines. Defensive utility stocks rose amid market turmoil. Mining stocks climbed as gold and silver prices surged. Companies like Dollar General and Intel saw positive movements in their stock prices.

Earnings reports for March 14, 2025, include a variety of companies such as AirSculpt Technologies, American Vanguard Corp, and FMC Corp. The author of the article did not have positions in the mentioned securities. The views expressed are solely for informational purposes and do not necessarily reflect those of Nasdaq, Inc.



Read more at Nasdaq: Tariff Worries Sink Stocks | Nasdaq