Stocks Tumble as Trump Pauses Mexico and Canada Tariffs Again
Published On Mar 6, 2025, 4:29 PM
Stocks experienced significant declines on Thursday, marking one of their worst weeks since a previous banking crisis. The S&P 500 dropped 1.8%, bringing its weekly loss to 3.6%. This downturn follows the imposition of high tariffs by the Trump administration, which has raised concerns about inflation, slow economic growth, and the potential for retaliatory measures from affected countries. Despite a momentary recovery fueled by optimism surrounding tech stocks, investor confidence remains shaken due to the continued threat of tariffs on imports, particularly from Canada, Mexico, and China. The S&P 500 is nearing correction territory, and the Nasdaq has already entered correction status.
Stock Forecasts
SPY
Negative
The ongoing tariff situation is likely to maintain investor uncertainty and cause further sell-offs in the market. As inflation concerns rise, companies that depend heavily on imports may face increased costs, leading to reduced earnings forecasts.
QQQ
Negative
Tech stocks have been the stronghold of the market; however, with the current economic uncertainty and correction territory for indices, these stocks may take a hit. This could lead to flight to safety in more stable investments.
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