Stock Market Plunges as Investors Grapple with Trump's Shifting Tariff Policy
US stocks tanked to session lows on Thursday after President Trump announced temporary exemptions on tariffs against Mexico, though the same caveat was not immediately said about Canadian imports. The Dow Jones Industrial Average fell 1.3%, or around 550 points, while the S&P 500 dropped 2%. The tech-heavy Nasdaq Composite plummeted over 2.5% as the major gauges pulled back from Wednesday's rally. If the Nasdaq losses hold, the index will be more than 10% off its December record high and officially in a market correction at the close.
- This volatility highlights the precarious nature of global trade dynamics, where even minor changes can spark significant market reactions.
- As investors continue to weigh the implications of Trump's shifting tariff policy on the US economy, what are the potential long-term consequences for American businesses operating globally?