4:15pm: In correction territory
US stocks closed sharply lower on Thursday as escalating trade tensions between the United States and the European Union shook investors.
The S&P 500 dropped 1.4% to officially enter a correction, now more than 10% below its record high in February. The index closed at 5,521 points.
The Nasdaq fell 2% to 17,303 points while the Dow Jones shed 1.3% at 40,813 points.
2:55pm: Stocks on the move
Intel Corp (NASDAQ:INTC, ETR:INL) has named industry veteran and former board member Lip-Bu Tan as its new CEO, effective March 18, in a move welcomed by analysts as a stabilising force for the struggling chip giant. Reflecting this, the stock spiked over 15% on Thursday.
UiPath Inc (NYSE:PATH) has been downgraded by Bank of America analysts who see few catalysts ahead for the software robots company following the release of its fourth quarter fiscal 2025 earnings report this week. Shares of UiPath traded down 14% at about $10 in the early afternoon on Thursday.
Adobe Inc (NASDAQ:ADBE) shares fell about 13% on Thursday afternoon after investors reacted negatively to the company's latest earnings report and AI-related disclosures.
1:43pm: Gold reaches new record
Stocks extended their sell-off as trade tensions overshadowed better-than-expected economic data, including a slowdown in U.S. producer prices and a drop in unemployment claims.
President Trump's threat to impose a 200% tariff on alcoholic beverages from the EU in response to the bloc's countermeasures rattled equity markets, according to IG's Senior Technical Analyst Axel Rudolph.
Meanwhile, fears of a US-led trade war drove investors toward safe-haven assets, pushing gold prices to a record high above $2,970 per ounce, nearing the $3,000 mark. Other precious metals and Dutch gas prices surged, while oil prices fell amid recession concerns.
12:45pm: Markets near correction
Stocks are trading broadly lower at midday as investor sentiment is weighed down by growing concerns over economic uncertainty and ongoing trade tensions.
The Nasdaq leads the declines, falling 1.4%, with weakness in the tech and communication services sectors dragging down the index.
The Dow Jones is down 1%, reflecting broader investor unease as fears surrounding the economic outlook intensify. Tariff threats and concerns over global growth continue to put pressure on market sentiment.The S&P 500 has also declined by 1%, inching closer to correction territory as inflation data and trade disputes take center stage.
Rising inflation expectations and uncertainty around Federal Reserve policy are contributing to the selling pressure. Investors are reacting to concerns that rising costs and geopolitical risks may undermine the growth prospects for these high-flying sectors.
11:52am: A closer look at PPI
The Producer Price Index (PPI) for final demand showed no change from the previous month, following a revised 0.6% increase in January.
The stability in the PPI was primarily influenced by a 0.3% rise in prices for final demand goods, marking the fifth consecutive monthly increase. This uptick was largely driven by a 1.7% surge in prices for final demand foods, notably a significant increase in chicken egg prices.
Conversely, prices for final demand energy declined by 1.2%, and the index for final demand services decreased by 0.2%, the largest drop since July 2024.
On an annual basis, the PPI increased by 3.2% in February, down from a 3.7% rise in January. Excluding the volatile food and energy sectors, the core PPI fell by 0.1% over the month, resulting in a 3.4% year-over-year increase.
In the labor market, initial claims for state unemployment benefits decreased by 2,000 to a seasonally adjusted 220,000 for the week ending March 8, reflecting continued stability. Economists had anticipated an increase to 225,000. The four-week moving average of claims, considered a more reliable indicator of labor market trends, rose by 1,500 to 226,000.
11:03am: PPI better than expected
February's CPI and PPI reports came in better than expected, suggesting to analysts that the inflation spike at the start of the year was likely a temporary fluctuation rather than a sustained trend.
Comerica's Bill Adams expects February’s PCE price data to be market-friendly as well. While inflation remains on a downward path, Adams emphasized that future trends will be shaped more by factors like tariffs, deportations, and cryptocurrency than by recent data.
"The economy entered 2025 with inflation on a downward trajectory," Adams commented.
"However, the outlook for inflation depends more on tariffs, deportations, and DOGE than the backward-looking data releases right now."
The Comerica chief economist also pointed out a disconnect between resilient jobless claims and reports of layoffs in federally funded sectors, suggesting that broader economic weakness has yet to fully materialize.
9.55am: Nasdaq slides at the open
Tech stocks have led the decline as Thursday trading begins on Wall Street.
The Nasdaq Composite has fallen 1.3%, with the S&P 500 down 0.8% and the Dow Jones slipping 0.5%.
Of the Nasdaq's 10 largest stocks only Broadcom shares are in green, with Tesla down 3.3%, Meta and Amazon down either side of 2%.
Slightly earlier, initial and continuing jobless claims fell slightly more than expected, while factory gate price inflation eased.
Samuel Tombs at Pantheon Macroeconomics noted that WARN layoff announcements were 18% higher in the three months to January than in the previous three months and Indeed’s measures of total and new job postings on March 8 were 9% and 4%, respectively, below their levels on the day of President Trump's inauguration.
All this is "suggesting that a rising proportion of people that are laid off will struggle to find new work quickly".
9.10am: PPI softer
Factory gate inflation, following the CPI numbers yesterday, has also proved softer than expected, with all of the measures of the producer prices index (month-over-month, year-over-year and headline and core numbers) lower than consensus economists estimates.
"Of course, this is only one month – and doesn’t yet include the impact of tariffs – so many people will discount these numbers, however, they do speak to the underlying trend pre-tariffs-taking-effect, and at least we are starting from a better place," says Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management.
"Clearly this is going to be a much more volatile year and it remains to be seen if all of the revolutionary changes to the economy and trans-Atlantic alliances will lead to a recession or if it will lead to higher growth rates in the future, but in the meantime a more cautious and risk-off posture is warranted."
8am: Stocks called lower on Thursday
Wall Street's rollercoaster week is set to see the major stock indexes fall on Thursday as more tariff threats were fired off between the US and Europe.
The tech-powered Nasdaq is again expected to take the lead, with a 0.5% decline on futures markets, while S&P 500 futures were down 0.3% and those for the Dow Jones dipped another 0.2%.
That followed a previous day's session where the S&P ended 0.5% higher along with a 1.2% gain for the Nasdaq, while the Dow finished 0.2% lower.
An hour and a half before trading opened, President Donald Trump fired off a warning on social media that the US will slap a 200% tariff on French wine, champagne and other alcohol from European Union countries.
He said in a post on his Truth Social platform that the EU "has just put a nasty 50% tariff on whisky" and the threatened 200% tariff will be imposed shortly "if this tariff is not removed immediately".
Molson Coors Beverage shares fell 1.7% premarket, while Budweiser maker AB Inbev shares fell 0.6% in Europe and Moët & Chandon champagne maker LVMH was down 0.3%.
Market analyst Fawad Razaqzada at City Index said yesterday saw the US tech giants mount a "respectable rebound" following a softer-than-expected CPI report, with European investors showing little enthusiasm on Thursday.
"At one stage, Nasdaq futures were down nearly 2%, shedding around 385 points from yesterday’s high. Not exactly an inspiring start to the day," he said, but noted that dip buyers have re-emerged, nudging index futures upwards.
More inflation data is due out today, with the release of factory gate price numbers, or the producer prices index in proper terms.
"Volatility remains the name of the game, making it difficult for both the bulls and bears to predict the Nasdaq 100 forecast," said Razaqzada.
"Recent sessions have seen efforts to establish a base, with tech megacaps staging a strong recovery yesterday... While volatility remains, there are early indications that the market could be on a recovery trajectory—though further confirmation is required before declaring a definitive low."