Stock Market Today: Stocks end sharply lower on tariff, growth concerns
The Nasdaq officially enters correction territory as stocks go for another wild ride amid tariff uncertainty.
Updated at 4:40 PM EST by Rob Lenihan
Stocks ended sharply lower Thursday as President Donald Trump issued exemptions on tariffs for a wide range of goods coming into the U.S. from Mexico and Canada, two days after slapping both countries with sweeping 25% tariffs
The Dow Jones Industrial Average tumbled 427.51 points, or 1%, to end the session 42,579.08, while the S&P 500 dropped 1.8% to 5,738.52 and Nasdaq sank 2.6% to finish the day ay 18,069.26.
The tech-heavy Nasdaq officially closed in correction territory, which occurs when an index falls 10% from a recent high.
Trump had announced on Wednesday that autos would be subj ect to a one-month reprieve from the tariffs.
After speaking with Mexican President Claudia Sheinbaum on Thursday, Trump said on social media that he would give a break to all Mexican goods covered by the United States-Mexico-Canada Agreement (USMCA).
"I did this as an accommodation, and out of respect for, President Sheinbaum," Trump said in his post, thanking Sheinbaum for her work addressing migration and fentanyl trafficking.
Trump said that he still plans to impose “reciprocal” tariffs starting on April 2.
Updated at 2:24 PM EST
Lows of the year
The S&P 500 is extending declines into the final two hours of the session, with the benchmark down 118 points, or 2.02%, to the lowest levels of the year and 50 points south of its Election Day close.
Marvell Technology's 19% slide, the worst since 2001, is dragging chip and tech stocks lower, with the Nasdaq off 2.8% on the day and 6.5% for the year. The Dow was last marked 540 points lower.
The S&P 500 is on pace for its sixth straight trading day with an absolute move of 1%+. November 2020 was the last time we had a streak of daily vol this long. pic.twitter.com/IECR9Gvy7a— Bespoke (@bespokeinvest) March 6, 2025
Updated at 12:01 PM EST
Mexico relief
President Donald Trump offered a one-month reprieve on USMCA-compliant goods from the 25% tariffs he imposed only two days ago, following a similar exemption for the auto industry yesterday, in the latest backtracking of his signature economic policy that has upset markets around the world.
“This Agreement is until April 2nd,” Trump said in message on his Truth Social media platform. “I did this as an accommodation, and out of respect for, [Mexico] President [Claudia] Sheinbaum.”
Stocks remain firmly in the red, however, with the S&P 500 down 87 points, or 1.48%,and the Nasdaq marked 353 points, or 1.91%.
Muchas gracias al presidente Donald Trump. Tuvimos una excelente y respetuosa llamada en la que coincidimos en que nuestro trabajo y colaboración han dado resultados sin precedentes, en el marco de respeto a nuestras soberanías. Continuaremos trabajando juntos, particularmente en… pic.twitter.com/JzD9jkm8tz— Claudia Sheinbaum Pardo (@Claudiashein) March 6, 2025
More backtracking?
Stocks are paring some of their earlier declines amid more tariff headlines that suggest further potential compromises on levies from goods imported from Canada and Mexico over the coming weeks.
However, even with the reprieve for auto sector duties, and possible breaks for the agricultural sector and products complaint with the USCMA, Canadian Prime Minister Justin Trudeau said he expects the current trade war to continue into the foreseeable future.
The S&P 500 was last marked 49 points, or 0.84% while the Nasdaq was down 183 points, or 0.99% and the Dow down 215 points,
This means: US has tariffs on essentially all imports from Canada and Mexico, but all tariffs are also deferred on mostly all products.
So tariffs on everything, except everything pic.twitter.com/zWhQv0exl4— Jens Nordvig (@jnordvig) March 6, 2025
Updated at 9:37 AM EST
Deep red
The S&P 500 was marked 85 points, or 1.45%, with the Nasdaq falling 344 points, or 1.87%.
The Dow slumped 488 points while the mid-cap Russell 2000 fell 32 points, or 1.55%, following a series of job market data updates prior to the start of trading.
"On any other day, today’s modest jobless claims number may have offset some of the concerns raised by yesterday’s weak ADP report," said Chris Larkin, managing director for trading and investing at E*Trade from Morgan Stanley.
"But right now, trade policy is dominating market action. Until the tariff smoke clears, it could continue to be a bumpy ride for traders and investors," he added.
S&P 500 Opening Bell Heatmap (Mar. 06, 2025)$SPY -1.34%
