U.S. stocks fell during a volatile trading session on Thursday after President Donald Trump announced that tariffs on Canada and Mexico would proceed as planned. A significant downturn in Nvidia’s stock following its earnings report further reinforced the negative momentum. The S&P 500 closed down 1.59% at 5,861.57, remaining in the red for the week and month.
The Nasdaq pulled back 2.78% to end the day at 18,544.42, with Nvidia’s 8.5% slide pulling the tech-heavy index lower. The Dow Jones Industrial Average dropped 193.62 points, or 0.45%, to finish at 43,239.50. Both the S&P 500 and the Nasdaq are on pace for their worst week since September 2024.
Relentless selling continues on D-street. Although, selling in the broader market is seen to be more profound as the Midcap index has nosedived massively. What are the technical and fundamental expert suggesting? Is there more correction seen in the near-term? Let's find out.… pic.twitter.com/bIHAmerqa5
— ET NOW (@ETNOWlive) March 3, 2025
President Trump announced that the proposed tariffs of 25% on Mexico and Canada would take effect on March 4 after the one-month moratorium ends. Trump claimed that the two countries had not sufficiently curbed the flow of drugs over the border. The president also stated that China, which already faces 10% tariffs from the U.S., would be subject to an additional 10% levy.
Stock Market LIVE: Sensex surrenders gains to trade 250 points lower, Nifty below 22100https://t.co/dyfP6AlWoE
— ET NOW (@ETNOWlive) March 3, 2025
“We’re in a stalled, range-bound, slightly irrational market as we wait for policy clarity,” said Jay Hatfield, CEO of Infrastructure Capital Advisors. Shares of Nvidia fell even after the company reported strong earnings and issued robust guidance driven by continued demand in the artificial intelligence sector. However, the company posted a decline in gross margins for the quarter, raising questions about whether the bull market leader could maintain its momentum.
Thoughts for @FortuneMagazine: "China is likely going to focus on what it needs to do, rather than a massive response. You don’t really want to upset a ‘bully’ further.”https://t.co/KipcYFSkMS
— Alicia GarciaHerrero 艾西亞 (@Aligarciaherrer) March 3, 2025
“Nvidia earnings were outstanding, but they come during an extremely jittery stock market,” said James Demmert, chief investment officer at Main Street Research. Besides Trump’s tariff declaration, a rise in jobless claims also subdued sentiment, adding to recent concerns about economic softening—jobless claims for the week ended Feb. 22 came in at 242,000, higher than the Dow Jones estimate of 225,000, according to a Labor Department report Thursday. Traders are now considering Friday’s personal consumption expenditures price index — the Federal Reserve’s preferred inflation gauge.
So much noise, so much chop, yet at the end of the week so simple.
Clean trend line tag on $NDX and bounce. pic.twitter.com/JdHe55kGhn
— Sven Henrich (@NorthmanTrader) February 28, 2025
Nvidia’s impact on stock downturn
With just two trading sessions left in February, all three major averages are on pace to finish lower. The S&P 500 has dropped almost 3%, while the Dow and the Nasdaq are down 2.9% and 5.5%, respectively. Vivek Arya of Bank of America argues that Nvidia’s current trading levels could provide an attractive opportunity for investors.
The demand environment is exceptionally strong, and now you have a stock which is growing 50% to 60% a year … and it’s trading at less than one times their earnings growth,” the senior semiconductor analyst said. The Consumer Financial Protection Bureau has dismissed several lawsuits that began during the Biden administration.
The dropped cases include actions against Capital One, Rocket Homes Real Estate, and Vanderbilt Mortgage & Finance. The CFPB has significantly scaled back operations since the Trump administration took over. Cantor Fitzgerald’s C.J. Muse remains optimistic about Nvidia’s prospects despite recent stock declines.
“We are in the first stages of the Blackwell ramp,” Muse said, noting that Nvidia delivered $11 billion of Blackwell architecture revenue in its fourth quarter, the fastest product ramp in its history. Palantir Technologies is on track for another week of significant declines. Shares have tumbled more than 12% this week, building on last week’s plunge of 15%.
Despite recent slides, the stock is still up more than 17% in 2025. Cleveland Fed President Hammack suggested that interest rates are likely to remain steady for the foreseeable future, emphasizing a cautious approach to monetary policy.
