Wall Street sell-off intensifies
US markets tumbled on Thursday as investors reacted to ongoing uncertainty surrounding President Donald Trump’s shifting trade policies. The Dow Jones Industrial Average fell 400 points, while the S&P 500 dropped 2% and the tech-heavy Nasdaq sank nearly 3%. The declines marked a sharp reversal after a brief rally on Wednesday, when the White House announced a temporary delay on some auto tariffs under the United States-Mexico-Canada Agreement.
Despite the reprieve, markets remained on edge as new statements from Treasury Secretary Scott Bessent signaled continued support for tariffs, reigniting investor fears about long-term trade policy direction. His comments, which included criticism of Canadian Prime Minister Justin Trudeau, only added to the uncertainty.
Tech stocks under pressure
The downturn was particularly severe in the technology sector, where a continued sell-off in artificial intelligence stocks contributed to market weakness. Chipmaker Marvell Technology plummeted 17% after issuing mixed guidance, while major semiconductor firms like Nvidia (down 6%) and Taiwan Semiconductor also saw losses. The Nasdaq is now in correction territory, down 10% from its December peak.
Economic concerns grow
Beyond trade policy, broader economic signals are adding to investor anxiety. Reports released this week indicate rising input costs for businesses due to tariffs, as well as a surge in job cut announcements, with analysts warning that Trump’s policies could be slowing economic momentum. The Federal Reserve’s Beige Book report also highlighted concerns about inflationary pressures and slowing growth.
Australian markets set for lower open
The turbulence on Wall Street is expected to weigh on Australian markets, with ASX futures pointing to an 84 point drop.
Tech stocks are also expected to be a major drag on Australian markets, following the sharp declines in US tech shares. Global uncertainty around trade policy and its potential impact on commodity demand is also pressuring oil prices, with crude trading below US$70 a barrel.
