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Stocks slipped on Thursday as investors digested the latest tariff threats from President Donald Trump, while they pored through new U.S. inflation figures.
The Dow Jones Industrials dropped 162.59 points to 41,188.24
The S&P 500 sank 24.46 points to 5,574.83.
The NASDAQ stumbled 135.83 points to 17,512,62
Trump took to his Truth Social platform to threaten 200% tariffs on all alcoholic products coming from countries in the European Union in retaliation for the bloc’s 50% tariff on whisky. “This will be great for the Wine and Champagne businesses in the U.S.,” he wrote.
Worries over U.S. trade policy have hurt stocks this week.
The S&P 500 and NASDAQ are respectively on track for losses of 3.3%and 3.7% this week. The Dow is off 3.6% in the period, heading for its worst week since March 2023. The broad market index briefly dipped into correction territory on Tuesday, down 10% from a record set in February.
However, investors got more encouraging inflation data Thursday. February’s producer price index — which measures the cost of producing consumer goods and is a good indicator of inflationary pressures — was flat that month, compared with an expected increase. This, alongside a softer-than-expected February consumer price index reading, may have helped ease traders’ concerns about the direction of the economy and the impact tariffs could have on inflation.
Prices for the 10-year Treasury were unchanged Thursday, keeping yields at Wednesday’s 4.32%.
Oil prices skidded 36 to $67.32 U.S. a barrel.
Prices for gold leaped $35.80 an ounce to $2,982.60 U.S.
