NEW YORK – U.S. stocks fell sharply Thursday as renewed trade tensions and a broad sell-off in technology shares rattled investors. The market’s downturn erased recent gains, sending key indexes to their worst losses in weeks.
The S&P 500 closed down 1.8% at 5,738.52, dragged lower by widespread losses across major sectors. The Dow Jones Industrial Average dropped 427.51 points, or 1%, to 42,579.08. Meanwhile, the Nasdaq Composite suffered the steepest decline, tumbling 2.6% to 18,069.26. With this drop, the tech-heavy index is now down 10% from its December record high, signaling a correction.
Trade Uncertainty Fuels Market Jitters
Investor sentiment soured as trade policy concerns resurfaced. The Biden administration extended 25% tariffs on key imports from Mexico and Canada but only granted a one-month delay on full implementation. The uncertainty surrounding future trade agreements has unsettled businesses and consumers, raising fears of inflationary pressures and potential economic stagnation.
Tech Stocks Lead the Decline
Technology stocks bore the brunt of the sell-off, led by a 20% plunge in Marvell Technology’s stock after the company issued a weaker-than-expected revenue forecast. Investors grew wary of a slowdown in spending on artificial intelligence infrastructure, a sector that has fueled much of the market’s recent gains.
Other major tech firms, including Nvidia and Broadcom, also suffered steep declines, dragging down the Nasdaq and reinforcing concerns about the sector’s vulnerability to economic uncertainty.
Small-Cap Stocks Struggle
The downturn wasn’t limited to large-cap stocks. The Russell 2000 index, which tracks small-cap companies, slid 1.6% to 2,066.55, extending its year-to-date losses to more than 7%. The continued weakness in smaller companies suggests broader market instability, especially in sectors reliant on domestic demand.
Technical Warning Signs Emerge
Market analysts warn that the S&P 500’s drop below its 200-day moving average could signal further downside. This key technical level is closely watched by traders as an indicator of overall market momentum. The breach suggests that selling pressure could intensify in the coming days, particularly if macroeconomic conditions remain uncertain.
Bond Market and Rate Expectations
In fixed-income markets, the 10-year Treasury yield inched up to 4.29% from 4.28% on Wednesday, reflecting investor caution. The bond market remains in focus as traders assess the Federal Reserve’s next move on interest rates.
Eyes on Jobs Report
Investors are now turning their attention to Friday’s U.S. jobs report, which is expected to provide fresh insights into the labor market’s strength. The data could influence Federal Reserve policymakers as they weigh potential interest rate adjustments in the coming months. Given the heightened market volatility, any surprises in the report could drive further stock swings.
Outlook Remains Uncertain
Thursday’s sell-off underscores mounting concerns over trade policy, corporate earnings, and economic growth. As volatility rises, investors will closely watch upcoming economic reports and Fed statements for clarity on the market’s direction.
Anna Kim is a media reporter for the Rockland Daily News, covering the business of Rockland County and digital disruption in the entertainment industry. She has been a member of the Company Town team for more than a decade. She previously wrote for the Miami Herald and the Palm Beach Post. A native of Wyoming, she is a graduate of the University of Colorado and Columbia University