Wall Street indices plunge into losses on selling in tech stocks, tariff worries

Wall Street indices are coming off of a two-day reprieve.

Wall Street extended early losses, slipping further into the red by mid-trade on March 26 as selling in technology stocks and uncertainty surrounding President Donald Trump’s tariff plans rattled investors.

Markets turned more volatile after Bloomberg News reported that Trump is preparing to announce auto levies as soon as Wednesday, ahead of his broader tariff measures set to take effect next week. Concerns over the potential economic impact of these policies added to the market’s cautious tone.

The S&P 500 fell 0.8 percent, while the Dow Jones Industrial Average edged 0.1 percent lower. The Nasdaq Composite, hit hardest by tech weakness, dropped nearly 1.7 percent.

Tech giants led the declines, with Nvidia tumbling more than 5.5 percent and Tesla shedding about 5 percent. Alphabet, Amazon, and Meta each fell over 1 percent.

US equities had briefly rebounded over the past two sessions after Trump suggested that not all tariffs would be enforced by the April 2 deadline, with potential exemptions for certain nations. However, a lack of clarity on the scope of these exemptions kept investors on edge. Trump further signalled a softer stance in a Tuesday interview, stating that tariffs would likely be 'more lenient than reciprocal,' reinforcing reports that some sector-specific duties could be delayed.

Despite these reassurances, ambiguity around the extent of US tariffs, the risk of retaliatory measures from trading partners, and the broader economic impact have left investors wary. Adding to market concerns, Barclays downgraded its S&P 500 target from 6,600 points to 5,900, citing ongoing tariff uncertainty.

Stocks had closed slightly higher in the last session, buoyed by optimism over potential tariff adjustments, which helped overshadow weak consumer confidence data. The latest figures revealed that US consumers’ outlook on income, business, and job prospects had dropped to a 12-year low.

Even with the recent market sell-off, investors took the opportunity to scoop up beaten-down stocks earlier in the week. The S&P 500 and Nasdaq gained 1 percent week-to-date, while the Dow rose 1.3 percent.

However, broader concerns persist and investors are now bracing for the release of the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures price index, due on Friday, which could set the tone for markets in the coming weeks.

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