Stocks slide as worries around Trump tariffs persist: Live updates

Stocks slipped on Thursday as investors digested the latest tariff threats from President Donald Trump, while they pored through new U.S. inflation figures.

The Dow Jones Industrial Average fell 220 points, or 0.5%. The S&P 500 dropped 0.6%, and the Nasdaq Composite shed 1%.

Trump took to his Truth Social platform to threaten 200% tariffs on all alcoholic products coming from countries in the European Union in retaliation for the bloc’s 50% tariff on whisky. “This will be great for the Wine and Champagne businesses in the U.S.,” he wrote.

Worries over U.S. trade policy have hurt stocks this week.

The S&P 500 and Nasdaq are respectively on track for losses of 3.3%and 3.7% this week. The Dow is off 3.6% in the period, heading for its worst week since March 2023. The broad market index briefly dipped into correction territory on Tuesday, down 10% from a record set in February.

However, investors got more encouraging inflation data Thursday. February’s producer price index — which measures the cost of producing consumer goods and is a good indicator of inflationary pressures — was flat that month, compared with an expected increase. This, alongside a softer-than-expected February consumer price index reading, may have helped ease traders’ concerns about the direction of the economy and the impact tariffs could have on inflation.

Though market strategists have been watching for a technical bounce after the recent sell off, some say the latest inflation data likely isn’t enough to lead to a sizable rebound. Concerns over Trump’s trade policies remain a key hangover on investor sentiment, and they throw into question how the Federal Reserve may proceed on interest rates.

“We still believe the next Fed rate move is lower, but it is hard to have high confidence with the impact of tariffs still uncertain,” said Scott Helfstein, Global X’s head of investment strategy. “The key question is whether tariffs will have a greater impact on growth or prices. In recent weeks, the rates market has signaled that weaker growth is the bigger concern with three cuts now being priced for this year.”