Wall Street sinks as Trump tariffs fuel trade jitters, tech stocks slide

Investors on edge as Tariff uncertainty looms

Stocks faced selling pressure on Thursday as investors sought clarity on the latest U.S. tariff measures. The Dow Jones Industrial Average fell 406 points, or about 1 percent, while the S&P 500 dropped 1.3 percent. The Nasdaq Composite declined 1.8 percent.

Fresh U.S. tariffs on imports from Canada, Mexico, and China took effect this week, rattling markets. In response, Canada and China imposed retaliatory levies, while Mexico signalled it would announce countermeasures over the weekend.

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Major indices have lost more than 1 percent this week amid escalating trade tensions. However, stocks saw a temporary boost on Wednesday after the White House granted a one-month tariff exemption for automakers complying with the United States-Mexico-Canada Agreement. This raised hopes that further exemptions might follow, though some on Wall Street remained sceptical.

Adding to market pressure, investors continued to unwind positions in artificial intelligence stocks, which have driven market gains for over a year.

Chipmaker Marvell Technology tumbled more than 16 percent after issuing mixed first-quarter guidance. Other semiconductor stocks, including ON Semiconductor, Taiwan Semiconductor, and Nvidia, also slid in premarket trade.

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Meanwhile, a string of economic reports has raised concerns that the administration’s policies could weigh on U.S. growth. The Federal Reserve’s Beige Book and the Institute for Supply Management’s manufacturing survey highlighted fears of rising input costs due to tariffs. Separately, data from Challenger, Gray & Christmas revealed that layoff announcements surged to their highest level this year, with the outplacement firm attributing the increase to efforts by Trump and billionaire Elon Musk to shrink the federal workforce.

Investors now await Friday’s key jobs report for further insight into the labour market’s strength.