Investing.com-- The S&P 500 fell sharply Thursday, as President Donald Trump’s temporary reprieve to Mexico and Canada from imported duties imposed just days ago failed to ease tariff-fueled jitters.
At 4:00 p.m. ET (21:00 GMT), the Dow Jones Industrial Average were 427 points, or 1%, lower, the S&P 500 index were down 1.8%, and the NASDAQ Composite dropped 2.6%.
Investors appear to be waiting on the sidelines until further clarity on the trade policies emerge following wild swings from the Trump administration on recently imposed tariffs on Mexico and Canada.
President Donald Trump announced that all goods and services from Mexico that comply with the USMCA would be granted a one-month delay from the recent 25% duties imposed on Mexican imports. The announcement came a day after the White House granted U.S. automakers complying with the USMCA a one-month reprieve from the tariffs.
Canada is reportedly also expecting to be granted a similar exemption, according to multiple media outlets.
Data released earlier Thursday showed that the number of Americans filing new applications for unemployment benefits fell more than expected last week, dropping 21,000 to a seasonally adjusted 221,000 for the week ended March 1.
Yet despite this relative good news, Philadelphia Federal Reserve President Patrick Harker said on Thursday that trouble may be brewing for a U.S. economy that is currently in good shape but showing signs of stress in the consumer sector and risks to the inflation outlook.
Investors are now keenly awaiting Friday’s employment report , to gauge the health of the U.S. economy, and the Federal Reserve’s future interest rate trajectory amid fears the new tariffs, coupled with rising raw material costs at factories, suggest inflation may increase in the coming months.
A slate of companies released quarterly earnings Thursday, with the retail sector in the spotlight.
Macy’s (NYSE: M ) stock fell 0.5% after the department-store chain forecast annual sales and profit below expectations, worried that shoppers were holding off buying apparel and accessories in the face of economic uncertainty.
Marvell Technology (NASDAQ: MRVL ) stock fell nearly 20% after the chipmaker’s quarterly results failed to excite investors hoping for strong artificial intelligence-driven growth.
Burlington Stores (NYSE: BURL ) stock soared nearly 9% after the cut-price department store reported better-than-anticipated fourth-quarter income, helping to offset concerns over an "uncertain" outlook for 2025.
Wendy’s (NASDAQ: WEN ) stock rose 1.4% after the restaurant chain reaffirmed its full-year adjusted earnings per share forecast and introduced long-term financial targets along with growth projections for 2028.
(Peter Nurse, Ayushman Ojha contributed to this article.)