US stocks fell sharply on Thursday as renewed tariff threats from President Donald Trump and a post-earnings sell-off in Nvidia rattled investors.
The Nasdaq Composite led the losses, plunging 2.8% to close at 18,544.42, while the S&P 500 dropped 1.6% to 5,861.57, turning negative for the year. The Dow Jones Industrial Average shed 193.62 points, or 0.5%, finishing at 43,239.5.
Market sentiment weakened following Trump’s announcement late Wednesday that he is considering 25% tariffs on European Union imports, particularly targeting cars and other goods. The president reaffirmed that tariffs on Canada and Mexico will take effect Tuesday, alongside a new 10% duty on Chinese imports.
Investors were further unsettled by disappointing economic data. Weekly jobless claims rose to their highest level in over two months, adding to concerns after weak home sales figures earlier this month.
“The market hates surprises,” said Michael Antonelli, managing director at Baird. “We’re in this world where we get daily surprises.”
Meanwhile, Nvidia shares plunged 8.5%, marking the chipmaker’s steepest post-earnings drop since November 2018. Despite beating earnings forecasts, narrower profit margins and uncertainty over sales in China triggered the sell-off.
In bond markets, the 10-year Treasury yield rose to 4.284%, breaking a six-day decline, while the 2-year yield edged up to 4.079%.
Elsewhere, Bitcoin traded around $83,000, continuing its strong 2024 rally.
European markets also closed lower, with auto stocks among the hardest hit following Trump’s tariff warning.
