S&P 500 has plunged into correction territory – falling 10.1 per cent from its record high close on February 19.
The benchmark index dipped 1.4 per cent on Thursday amid an escalating tariff war between the US and its trading partners.
This significant shift in market sentiment reflects deepening investor concerns over trade tensions.
The S&P 500, widely considered the best gauge of large US companies and broader stock market health, now joins the Nasdaq in correction territory.
S&P 500 has plunged into correction territory – falling 10.1 per cent from its record high close on February 19
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Fears of a potential recession are growing as the trade dispute between the US and its top trade partners intensifies.
The S&P 500 ended Thursday’s session at 5,521.52 points.
Earlier this week, the Dow Jones Industrial Average suffered a catastrophic drop of more than 1,100 points in a single day.
Tuesday saw the S&P 500 fall 3.3 per cent, marking its worst decline in two years.
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The US stock market’s plunge came as investors grappled with increasing uncertainty about the economic outlook.
Market volatility has increased significantly as traders reassess risk amid the growing trade tensions.
President Trump has escalated trade tensions by threatening to levy a 200 per cent duty on European wine and cognac imports.
The threat comes with a condition that the EU must remove surcharges on US whiskey.
Fears of a potential recession are growing as the trade dispute between the US and its top trade partners intensifies
REUTERS
This latest move follows previous warnings that the US would penalise the bloc if it imposed retaliatory tariffs on American goods next month.
The president’s aggressive stance on trade has rattled markets and contributed to the broader sell-off.
Trump has notably refused to rule out the possibility of a recession – instead describing the current economic situation as “a period of transition”.