- The S&P 500 Having entered Thursday a correction three weeks after reaching record heights after the 200% price threats of Trump against European wine and champagne. While inflation was cooled in February, the news was not sufficient to prevent the S&P from decreasing by 10%.
The most popular index fell into a correction in the midst of concerns about President Donald Trump’s latest concerns, the most recent inflation data and the closure of the materialized government.
The S&P 500 fell 1.4% Thursday, more than 10% below all time, the index reached only three weeks ago, falling into the correction territory. Wall Street considers market correction as an index more than 10% compared to a recent peak.
In addition, the Nasdaq composite focused on technology, has slipped almost 2% and is already in correction territory last week. The industrial average of Dow Jones fell by almost 550 points, a sliding of 1.3%.
“I think what the markets tell us is that they are very concerned about the potential for recession,” said Kristina Hooper, chief strategist of the world invesco market New York Times. “This is certainly not what the markets were waiting for in 2025.”
The most recent inflation data suggest that prices are cooling after the consumer price index increased 0.2% seasonally for February, sticking inflation to 2.8%, according to the Labor department.
Cooling prices are not a cause of celebration, as Trump’s most recent price threats cause inflationary concerns to Wall Street.
Early Thursday, Trump warned of 200% of European wine prices, champagne and other spirits in a reprisals in Tit-For-Tat at the announcement of the European Union that the block would take homework of 50% from American whiskey and bourbon. EU prices were in compensation for the global Trump rate of 25% steel and aluminum.
“In just a few weeks, the wider market has passed from record heights to the correction territory,” said the chief technical strategist of LPL Financial Adam Turnquist in a note obtained by Cnn. “Price uncertainty has captured most of the blame for sales pressure and exacerbates economic growth problems.”
The growing fear of a government closure adds to the skepticism of investors. The Democrats of the Senate seek to block a bill for republican spending to avoid closing and asked the GOP to accept a blue plan to provide funding until April 11.
While Wall Street hopes market stability, it seems that tariff problems will remain as Trump has told journalists that he would not consider Canada for pricing amnesty.
“I’m sorry, we have to do this,” he said.
This story was initially presented on Fortune.com
