Samir Arora on stock market: 'Why this bear market is…' – Investor not worried about recent crash; here's whyhttps://t.co/5YOI1DRcxe
— ET NOW (@ETNOWlive) March 8, 2025
The U.S. stock market tumbled on Thursday as investors grew increasingly worried about the impact of tariffs and slowing economic growth. The Dow Jones Industrial Average dropped over 400 points, or about 1%, while the S&P 500 fell nearly 2%. The Nasdaq Composite plunged more than 2.6%, officially entering correction territory.
Trade-war uncertainty lingered as investors speculated on the extent of President Donald Trump’s willingness to impose tariffs.
#USMarketAtOpen | NASDAQ 100 falls 10% from record high, set to enter correction pic.twitter.com/SMVe5yvMs4
— ET NOW (@ETNOWlive) March 7, 2025
On Thursday, Trump announced a pause on tariffs for some Mexican goods, with a later extension to include certain Canadian goods. This followed a previous announcement about a one-month pause on duties for automakers from Mexico and Canada.
Tech stocks led the retreat, with Marvell seeing nearly a 19% drop after indicating higher AI-related investments. Other chipmakers like Nvidia, Broadcom, and AMD also saw significant losses.
Dow plunges due to tariff concerns
As a result of another tough day for US stocks, only one of the three major indices is in positive territory for 2025 — and just (0.08% for the Dow).
The Nasdaq has been particularly hard hit, down 10% from its recent high. #stocks #markets #investing #investors pic.twitter.com/R9C35nq06F— Mohamed A. El-Erian (@elerianm) March 6, 2025
Investors are closely monitoring the semiconductor sector amid heightened concerns over AI demand.
Good Morning from #Germany, which is becoming great again thanks to Donald Trump. Thanks to the decoupling from America and the billions in infrastructure investment that this entails, German stocks are gaining new appeal. Their global stock market capitalization share has… pic.twitter.com/2IElDZTwpv
— Holger Zschaepitz (@Schuldensuehner) March 8, 2025
Gap, bucking the trend of disappointing retailer earnings, beat profit estimates and signaled a positive outlook despite facing the challenges of tariffs in key sourcing regions like China. Gap’s shares rose around 8% in post-market trading after the announcement.
Meanwhile, jobless claims data revealed 221,000 initial claims, down from the previous week and below economist expectations. However, recent economic data has spurred concerns over a potential stalling of US economic growth. Market participants are now anticipating Friday’s jobs report, which is seen as a critical risk factor for the market’s direction.
Commerce Secretary Howard Lutnick hinted that goods compliant with the US-Mexico-Canada Agreement (USMCA) might receive a one-month tariff reprieve, though this has not been officially confirmed. President Trump’s fresh adjustments to tariffs, especially the decision to delay some on Mexican and Canadian goods, came as a relief to some but left uncertainty about the broader trade strategy. As market reactions continue to unfold, investors remain vigilant of any further policy shifts that could impact economic stability.
