Market Highlights

It was only three weeks ago that exuberance over Donald Trump’s blueprint for the economy had vaulted US stocks to a record high. Today, with concern mounting over the goals and impact of his trade war, the S&P 500 tumbled into its first 10% correction in almost two years. Volatility surged anew across asset classes Thursday, extending a retreat from risk that has lopped $5 trillion from the US equity benchmark and shows signs of seeping into high-yield bonds. New salvos in President Trump’s tariff offensive spurred another race for havens in the Treasury market.

Cooler-than-forecast February inflation pushed stocks higher after two days of heavy losses. A kneejerk rally in bonds quickly reversed and yields rose across the curve amid concerns over an escalating trade war. Equities advanced after a selloff that put the S&P 500 on the verge of a technical correction. The bounce was led by tech megacaps, which got heavily hit during the recent market rout. While the surprise slowdown in consumer prices brought a degree of relief to traders, several voices on Wall Street saw the data as the “calm before the storm” given the uncertainties around the potential impacts of tariffs on the economy.

Stocks climbed in late hours after President Donald Trump said he doesn’t see a US economic recession, downplaying Wall Street’s jitters around his trade war. A $600 billion exchange-traded fund tracking the S&P 500 (SPY) rose after the close of regular trading. The WhiteHouse said 25% tariffs on steel and aluminum would take effect on Canada and other nations, as Trump backed off a threat to impose 50% duties on the largest US trading partner’s metals

Anxiety that tariffs and government firings will torpedo growth in the world’s largest economy extended a three-week stretch of volatility across global markets. American stocks got hammered as Wall Street tempered bullish views while demand for recession havens boosted sovereign bonds. A selloff in the S&P 500’s most influential group — big tech — weighed heavily on trading. The gauge came within a striking distance of a correction, extending its plunge from a record to 8.6%. The Nasdaq 100 saw its worst day since 2022. A gauge of the Magnificent Seven megacaps tumbled 5.4%. Treasury yields slid on bets that an economic slowdown would force the Federal Reserve to slash interest rates. Bitcoin slipped below $80,000.

A roller-coaster week for markets ended on that same note, with stocks whipsawing as traders tried to make sense of a myriad of headlines around the economy, tariffs and geopolitical developments. Just minutes after a slide that drove the S&P 500 down over 1%, the gauge staged an “oversold bounce” as Federal Reserve Chair Jerome Powell said the economy is fine. The Nasdaq 100 moved away from the threshold of a correction. Bonds fell. In the first signal of a positive response from President Vladimir Putin to US counterpart Donald Trump’s call for a ceasefire, Russia was said to be willing to discuss a temporary truce in Ukraine. The dollar saw its worst week since November 2022 Equities and Treasury yields fell on Monday as concerns about the health of the US economy weighed on investors’ appetite for risk

Wall Street traders continued to navigate intense market swings amid a slew of tariff headlines, with stocks extending losses after almost wiping out their selloff. The S&P 500 dropped almost 1.5%, following a brief respite that was triggered by President Donald Trump’s confirmation that he’ll exempt Mexico from new 25% tariffs on any goods and services that fall under the North American trade agreement known as USMCA. The Nasdaq 100 fell 1.8%. The Dow Jones Industrial Average fell 0.8%. The dollar traded near session lows, while the peso rose. Treasury trading was fairly muted — in contrast to the extended plunge in Europe.

A late-session runup in US stocks capped another volatile day for global markets, a session that also featured extreme moves in European bonds and equities. Geopolitical news dominated sentiment once again, including a delay in the imposition of auto tariffs in Canada and Mexico by the White House.

Stocks dropped around the world as concerns about the impacts of a trade war on the global economy spurred a fight to short-term bonds, gold and haven currencies.

More tepid economic news and a pledge by Donald Trump to push through tariffs on top trading partners stressed Wall Street risk tolerances anew, sending bonds up and stocks to their biggest loss of the year

Stocks shook off another bout of volatility spurred by geopolitical anxiety and a White House shouting match to rally at the end of a jittery February.