Stocks Slump as Trump Tariff Fears Intensify Alongside Job Cuts
Market Overview Amid Trump Tariff Fears
The stock market sank after the opening bell Thursday amid deepening fears about the potential damage President Trump's new tariffs could do to a weakening economy. All three major indexes kicked off trading Thursday with losses surpassing 1 percent, relinquishing gains from a brief market rebound Wednesday.
Economic Impact of Tariffs
The Dow Jones Industrial Average was down more than 470 points shortly after the market opened, losing 1.3 percent. The S&P 500 index fell by 1.5 percent, while the Nasdaq composite dropped 1.7 percent. Wall Street has fretted for days over the impact of Trump's new 25-percent tariffs on Canadian and Mexican products. Although stocks initially recovered after the White House announced an exemption for North American auto companies, this narrow reprieve did little to assuage fears.
Job Cuts Add to Market Woes
The U.S. economy has shown signs of slower growth and persistent inflation since the start of 2025. Businesses and consumers brace for higher costs from these import taxes. Compounding the market's downturn was the news of job reductions, with a report from Challenger, Gray and Christmas revealing the highest number of job cuts in February since 2009. Employers reported 172,017 job cuts, marking a concerning trend as this figure is more than double the cuts announced in February 2024.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.