Wall Street closed with strong falls on Thursday and the S&P 500 index confirmed that it is in a correction, after inflation data were overshadowed by the fear that the climbing of the United States tariff war against its largest commercial partner can rekindle inflation and take the economy to a recession.
According to preliminary data, the S&P 500 lost 77.74 points, or 1.39%, to 5,521.56 units; The Nasdaq Composite dropped 343.77 points, or 1.95%, to 17,304.68 units and the industrial average Dow Jones fell 537.67 points, or 1.30%, to 40,813.26 units.
A wide sales wave dropped to the three main stock market rates in the United States, with large technological ones dragging Nasdaq.
“The mood is terrible,” said Mike Dickson, head of Horizon Investments analysis. “Every day there are new news about tariffs, and that is weighing.”
The S&P 500 closed 10% below its historical maximum of February 19, confirming that the market reference index has been in a correction since then.
On March 6, Nasdaq had already shown that it was in a correction.
Lee: Trump tariffs arrested exports of tools, electronic and auto parts, Revea Amarga
In another episode of President Donald Trump’s trade war, the European Union responded to the general tariffs of the United States on steel and aluminum imposing a 50% tax on US whiskey exports.
Trump threatened in his social social network social with charging a 200% tariff to the importation of European wines and liquors.
A Reuters/Ipsos survey between Americans held on March 11 and 12 showed that 57% of respondents believe that Trump’s movements to shake the economy are too erratic, and 53% believe that the tariff war will do more damage than well.
The Producer Price Index (IPP) of the Department of Labor seemed to echo the IPC data on Wednesday, with colder readings than expected that seem to confirm that inflation remains in its serpenting descending trajectory as it approaches the annual objective of 2% of the Federal Reserve of the United States.
Lee: Canada begins to apply new retaliation tariffs to the US for steel and aluminum
The markets were also attentive to the struggle that is being fought in the Capitol, where legislators try to approve a provisional budget law before the deadline to avoid a partial closure of the government.
With Reuters information
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