S&P 500 enters correction territory, joins Nasdaq as trade tensions mount. Is a bear market next?
1 week, 6 days ago

S&P 500 enters correction territory, joins Nasdaq as trade tensions mount. Is a bear market next?

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The ongoing sell-off in the U.S. markets intensified further on Thursday, sending the S&P 500 into correction territory after U.S. President Donald Trump threatened to impose 200% tariffs on wine, champagne, and other alcoholic products from France and other European Union countries in retaliation for the bloc’s 50% tariff on whiskey. Escalating trade tensions, fueling fears of a potential U.S. economic slowdown, have driven the S&P 500 index down another 1.4% on Thursday, closing more than 10% below its February 19 all-time high. Canada, a neighbor and close ally that is the biggest aluminum provider to the U.S., has also announced countermeasures to Trump's metals tariffs and has taken the dispute to the World Trade Organization. Wall Street analysts turn cautious on U.S. stocks Amid Trump's protectionist measures, S&P Global Market Intelligence is forecasting GDP growth to decline from 2.8% in 2024 to 1.9% in both 2025 and 2026, followed by 1.6% in 2027, according to a report cited by ANI.

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