NEW YORK, March 7 (Xinhua) — U.S. stocks dropped to session lows on Thursday as uncertainty over trade policy dampened market sentiment.
U.S. President Donald Trump announced that additional Canadian and Mexican goods complying with the United States-Mexico-Canada Agreement (USMCA) would receive a one-month tariff exemption. However, unlike the prior session, the news failed to lift markets as concerns over trade policy continued to weigh on investors.
The Dow Jones Industrial Average dropped 427.51 points, or 0.99 percent, to close at 42,579.08. The S&P 500 fell 104.11 points, or 1.78 percent, to 5,738.52, while the Nasdaq Composite tumbled 483.48 points, or 2.61 percent, to 18,069.26, which is now down more than 10 percent from its most recent record high in December and has entered correction.
Across the S&P 500’s 11 primary sectors, 10 ended in the red. Consumer discretionary and real estate led the losses, dropping 2.93 percent and 2.78 percent, respectively. Energy was the sole gainer, rising 0.50 percent.
“To the extent that another country’s practices harm our own economy and people, the United States will respond,” Treasury Secretary Scott Bessent said during an Economic Club of New York event. “This is the America-first trade policy.”
However, investors appeared fatigued by the barrage of statements from administration members and changes to tariff policy in recent days. “You’re just having confusion,” said Keith Lerner, chief market strategist at Truist. “That confusion is permeating into the day-to-day swings of the market.”
The technology sector led the sell-off after Marvell Technology issued a disappointing quarterly sales forecast, falling short of investor expectations for AI-driven growth. Marvell shares plunged 19.81 percent, dragging down fellow chipmakers Nvidia, Broadcom, and AMD.
Investors also assessed the latest job market data from the Department of Labor. Weekly jobless claims fell to 221,000, lower than both the prior week and economist estimates. However, Washington, D.C., recorded 1,510 new unemployment claims for the week ending March 1, down from 1,893 but still significantly above historical averages.
Separately, a report from Challenger, Gray & Christmas showed that job cuts surged in February to 172,017, marking the highest monthly level since July 2020. This represented a 245 percent increase in layoff announcements from the prior month.
