4:21pm: Tech sell-off
Stock markets suffered a steep sell-off on Thursday, with all major indices closing significantly lower amid investor concerns over earnings disappointments, trade policy uncertainty, and economic outlook.
The Nasdaq led the decline, plunging 2.6% or 483 points to settle at 18,069. The drop pushed the tech-heavy index into correction territory, marking a 10% decline from its December peak. Semiconductor stocks were among the hardest hit, dragging the broader technology sector lower.
The S&P 500 also faced substantial losses, shedding 1.8% or 104 points to end the session at 5,739, its lowest close since November. Meanwhile, the Dow Jones fell 1%, losing 428 points to finish at 42,579.
The sell-off was fueled by disappointing earnings from Marvell Technology, ongoing concerns over President Trump’s shifting tariff strategies, and broader economic worries. Investors are now focused on Friday’s jobs report, which could provide further clarity on the labor market and shape market sentiment in the coming days.
3:33pm: Canada tariffs delayed
Canada will also get a one-month reprieve from Trump's 25% tariffs for goods and services covered by the United States-Mexico-Canada Agreement (USMCA).
Trump announced the tariffs delay for Mexico in a post on social media earlier on Thursday, with Reuters and Bloomberg reporting in the afternoon that Canada will also be included.
2:58pm: CPI preview
Wells Fargo expects February's CPI inflation to moderate compared to January’s hotter-than-expected reading.
Headline CPI likely rose 0.25%, about half of January’s increase, with declining energy goods prices offsetting higher natural gas costs. Food inflation remains firm, with grocery prices rising 0.4%, pushing the three-month annualized rate to 4.1%, the highest in two years.
Tariffs on Chinese, Canadian, and Mexican goods could further fuel inflation. While year-over-year inflation may dip in February, Wells Fargo sees it rebounding in the spring and staying near 3% for the rest of the year despite easing shelter costs and signs of consumer fatigue.
1:19pm: Mexico tariffs delayed
The Trump administration has paused tariffs on Mexican goods and services covered by the United States-Mexico-Canada Agreement (USMCA), a trade agreement between the three nations implemented during Trump’s first presidency, for one month.
These goods will be exempt from Trump’s sweeping 25% tariffs until April 2.
“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,” Trump said in a post on his social media platform Truth Social.
Trump said he made this accommodation “out of respect for, President Sheinbaum.”
Trump did not mention Canada, another country he slapped with 25% tariffs on most goods earlier this week.
Earlier on Thursday, US commerce secretary Howard Lutnick said Trump will likely announce a one-month delay on Canadian tariffs.
However, a senior Canadian government source told CNN the negotiations were ongoing. “There is no clarity on whether or not the tariffs will be lifted for Canada,” the source said.
12:10pm: Semiconductor stocks under pressure
The Nasdaq is leading the decline in US markets today, falling by 2.1% as tech stocks continue to face significant pressure.
The S&P 500 is down 1.6%, while the Dow Jones has dropped 1.1%.
The downturn in the Nasdaq is largely driven by the technology sector, particularly semiconductor stocks. Marvell Technology experienced a sharp decline following mixed guidance for the first quarter, which also impacted other semiconductor manufacturers like ON Semiconductor, Taiwan Semiconductor, and Nvidia.
Despite a temporary boost on Wednesday after President Trump announced a one-month delay in auto tariffs, investors remain cautious due to ongoing trade tensions and uncertainty over future tariff actions.
The US dollar continues to decline, and government bond yields have increased globally.
Traders are now focusing on upcoming economic data, including the February nonfarm payroll report scheduled for release on Friday, which could provide further insights into the state of the economy and influence Federal Reserve decisions.
11:22am: Potential tariffs reprieve
The Trump administration is considering delaying aggressive tariffs on goods and services that uphold the United States-Mexico-Canada agreement for another month, commerce secretary Howard Lutnick said.
The exemption would provide temporary relief to Mexico and Canada following President Trump's decision to impose a 25% tariff on imports from both countries earlier this week.
Lutnick told CNBC: “The reprieve is for one month. It’s likely that it will cover all USMCA-compliant goods and services.”
Stocks remained in negative territory following Lutnick’s comments, with the Nasdaq leading the declines with a 0.8% drop to 18,399 points. The S&P 500 was down 0.6% at 5,805 points while the Dow Jones fell 0.3% to 42,896 points.
9.50am: Tech stocks lead Wall Street lower
US stocks are having another frenzied morning of selling.
The S&P 500 has tumbled 1.5% at the open, with the Nasdaq Composite down 1.8% and the Dow Jones losing 1.3%, while the SMID caps of the Russell 2000 are down 0.3%.
Nvidia is down 3.8%, with other semiconductor stocks also falling.
Some traders are citing earnings from custom chip maker Marvell Technologies as the cause, with Bloomberg Intelligence analysts saying the numbers "might disappoint when compared with typical expectations for sizable beat and raises from AI semiconductor companies".
Super Micro Computer is down 7.7% and Broadcom is down 6.7%.
Other notable fallers among the big techs include Tesla, down almost 5%; Amazon, down 2.2%; and Netflix, down 4.2%.
7.55am: Nasdaq set to lead Wall Street lower again
US stocks are set for a tough start on Thursday as traders have their eye on the jobs market and anything new the President has to say.
Futures for the S&P 500 were down 1.1%, with Nasdaq 100 futures trading down 1.4%, and Dow Jones futures 0.9% lower. Futures for the small- and mid-cap Russell 2000 are down 1.3%.
In pre-market trading, Nvidia is down 2.6% along with other chip stocks, while Palantir and Tesla are both around 2% lower. The dollar index (DXY) is down 1.5%.
This follows the previous day's upward march, with the S&P 500 and Dow Jones climbing 1.1% and the Nasdaq surging 1.5%.
Carmakers were among the winners, as the White House granted the sector a reprieve from the Canada and Mexico tariffs, though they will only be delayed by a month.
"President Trump has called everyone’s bluff and has said he’s prepared to take some pain to get what he wants," said analyst David Morrison at Trade Nations.
"Tariffs may have been the trigger for the latest downturn, but they aren’t the only story. Speculation is growing over the possibility that a US recession could start this year. GDP growth forecasts have been downgraded sharply, while inflation remains well above the Fed’s 2% target."
Recent economic data releases have disappointed, including consumer confidence, retail sales and weekly jobless claims.
After yesterday's US ADP jobs report (which showed fewer jobs were added than expected) and before tomorrow's big non-farm payrolls report, today's US data includes the Challenger job cuts and initial jobless claims.
Market analyst Kenny Polcari at Slatestone Wealth says while these figures "don’t usually create havoc", if the numbers veer substantially away from expectations, he expects "algo’s to overreact" - ie algorithmic trading systems.
The all-important number is tomorrow's official jobs report, and "you can feel the tension", he says.
"Maybe the correction is upon us and that would not be a bad thing….prices got stretched, and if we are intentionally trying to slow the economy then prices will and should reset."
He notes that US Treasury yields are higher, with the 10yr up 2bps to 4.3%, the 2yr is now yielding 4%. "Both remain well below the most recent highs of 4.6% and 4.3% respectively – but are up from their most recent lows of 4.13% and 3.85%".
After oil collapsed again yesterday, with WTI falling 2.7% to end the day at $66.39 and testing $65.2, Polcari notes that Trump campaigned on (to use the President's beloved capital letters) LOWER OIL PRICES so "none of this should be a surprise to anyone – not only did he tell us to expect lower prices, the charts also suggested lower oil prices… and lower oil prices are good for the economy, good for inflation, good for demand and good for us to refill the empty Strategic Petroleum Reserve that the Biden’s depleted…so that’s just another reason NOT to light our hair on fire."