The rocky week on Wall Street continued on Thursday as investors grappled with further uncertainty from President Donald Trump’s tariffs.
US stocks opened sharply lower but fluctuated on the mixed messaging coming from the White House. All three major indexes closed lower, despite Trump announcing a nearly one-month tariff delay on all products from Mexico and Canada that are covered by the USMCA free trade treaty.
Earlier in the day, US Commerce Secretary Howard Lutnick told CNBC that the president would likely announce a one-month tariff delay on products that are covered by the USMCA.
The Dow closed lower by 428 points, or 0.99%. The broader S&P 500 fell 1.78% and the Nasdaq Composite slid 2.61%. The Nasdaq closed in correction territory, down 10% from its record high in December.
That leaves the Dow down almost 3% on the week, on track for its worst week since March 2023. The S&P 500 and Nasdaq are both on pace for their worst week since September 2024.
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%.
Investor sentiment is struggling due to the persistent uncertainty around tariffs, according to Rob Haworth, a senior investment strategist at US Bank Wealth Management.
“Eventually, that uncertainty is just going to weigh too much on business decisions and those forward prospects for earnings growth,” Haworth said.
Also in focus for investors: 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 by almost 20%.
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.
The US dollar index, which measures the dollar’s strength relative to six other currencies, fell to its lowest level since November — signaling a weakening outlook for US economic growth.
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 into how the economy is doing.
“I think if we see the hard data start to come in much weaker, that’ll become more and more concerning for the market,” said Haworth.
“Extreme fear” has been the sentiment driving investors for the past week, according to CNN’s Fear and Greed Index .
CNN’s David Goldman contributed reporting.
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