Highlights
Stocks dropped Thursday to give back Wednesday's rebound as investors returned to risk-off mode and obsessed over tariffs. The Dow Jones industrial average fell 1.0 percent, the S&P 500 lost 1.8 percent, and the Nasdaq dropped 2.6 percent. US bond yields were mostly lower, the dollar was mixed versus major currencies, and oil prices eased.
Equities came under selling pressure early after the monthly Challenger report showed layoffs surged in February, which played on the market's recession worries which have been compounded by fear of tariffs. Stocks rebounded briefly on news that Trump had delayed for another month imposition of tariffs on a portion of goods from Canada and Mexico, but the selloff resumed as the market chokes on tariff uncertainty. It seems that policy tweaks intended to moderate the effect of tariffs have become another source of worry weighing on sentiment. Trump's remark that he is not watching the stock market did not go down well as investors have hoped the dismal market performance would force Trump to pursue a more moderate course.
Growth stocks suffered the most Thursday, which left the Nasdaq down 10 percent from the December peak to enter correction territory. Megacaps and semiconductors had another bad day with AI bellwether Nvidia down nearly 6 percent. Among sectors, worst hit were consumer discretionary, financials, technology and utilities while energy held up best.
Markets are bracing for monthly employment figures Friday morning. The Econoday consensus looks for an increase of 160,000. The whisper number, reflecting an increasingly gloomy view of the economy, looks for 120,000.
Equities came under selling pressure early after the monthly Challenger report showed layoffs surged in February, which played on the market's recession worries which have been compounded by fear of tariffs. Stocks rebounded briefly on news that Trump had delayed for another month imposition of tariffs on a portion of goods from Canada and Mexico, but the selloff resumed as the market chokes on tariff uncertainty. It seems that policy tweaks intended to moderate the effect of tariffs have become another source of worry weighing on sentiment. Trump's remark that he is not watching the stock market did not go down well as investors have hoped the dismal market performance would force Trump to pursue a more moderate course.
Growth stocks suffered the most Thursday, which left the Nasdaq down 10 percent from the December peak to enter correction territory. Megacaps and semiconductors had another bad day with AI bellwether Nvidia down nearly 6 percent. Among sectors, worst hit were consumer discretionary, financials, technology and utilities while energy held up best.
Markets are bracing for monthly employment figures Friday morning. The Econoday consensus looks for an increase of 160,000. The whisper number, reflecting an increasingly gloomy view of the economy, looks for 120,000.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
