S&P 500 falls after Trump says tariffs going into effect, Nvidia declines: Live updates

The S&P 500 traded lower Thursday as investor uncertainty rose following President Donald Trump’s declaration that tariffs on Canada and Mexico would proceed as planned, in additional to greater duties on China. Meanwhile, market bellwether stock Nvidia slipped following its fourth-quarter earnings results.

The S&P 500 fell 0.5%. The Nasdaq Composite declined 1.1%, with Nvidia’s 3.2% decline pulling the tech-heavy index lower. Meanwhile, the Dow Jones Industrial Average managed to inch up 83 points, or 0.2%.

In a post on Truth Social, Trump announced the proposed tariffs of 25% on Mexico and Canada will take effect on March 4 after the one-month moratorium ends. Trump claimed hat the two countries had yet to curb the flow of drugs over the border by enough. The president also stated that China, which already faces 10% tariffs from the U.S., would face an additional 10% levy.

Shares of Nvidia declined even after the chip giant exceeded fourth-quarter estimates on the top and bottom lines. The company also issued strong guidance, reflecting continued demand driven by the artificial intelligence race. However, the company’s posted its smallest revenue beat in years.

Besides Trump’s tariff declaration, a jump in jobless claims also subdued sentiment, adding to recent concerns of economic softening. Jobless claims for the week ending Feb. 22 came in at 242,000. This was up 22,000 from the previous week’s revised level and higher than the Dow Jones estimate for 225,000, according to a Labor Department report Thursday.

This comes on the back of several other recent economic reports — including a softer-than-expected consumer confidence reading, disappointing retail sales numbers and a weak consumer sentiment reading — which have rattled stocks and raised worries about the health of the U.S. economy.

Traders are now looking ahead to Friday’s personal consumption expenditures price index — the Federal Reserve’s preferred inflation gauge.

The S&P 500 traded barely above the flatline on Wednesday ending its four-day streak of losses. The 30-stock Dow dropped 188 points, or about 0.4%, while the tech-heavy Nasdaq Composite added nearly 0.3%. With just two trading sessions left in February, all three major averages are on pace to finish lower. The broad market index has dropped 1.4%, while the Dow and the Nasdaq have declined more than 2% each.