USA Equities
| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 41,911.71 | -890.01 | -2.08% |
| S&P 500 | 5,614.56 | -155.64 | -2.70% |
| Nasdaq | 17,468.32 | -727.9 | -4.00% |
| VIX | 27.86 | 4.49 | 19.21% |
| Gold | 2,889.10 | -10.3 | -0.36% |
| Oil | 65.75 | -0.28 | -0.42% |
US MARKET
Tariff worries rattled Wall Street again Thursday, pushing the S&P 500 into a correction that left it at the lowest in six months. The S&P 500 fell 1.4% on the day, bringing its three-week rout past 10%, a level that meets the technical threshold for a correction. It’s down more than 6% for the year. The tech-heavy Nasdaq 100 Index, also in a correction, tumbled 1.9% on the day. The Dow Jones Industrial Average fell 1.3%, bringing it 9.3% below its last record in December.
The 16 trading sessions it took for the S&P 500 to tumble by this magnitude from its Feb. 19 high marks the seventh-fastest correction in records going back to 1929. Three of the seven-fastest drawdowns of this magnitude happened under President Donald Trump – in 2018, 2020 and now. Most corrections take about two months to play out. That is, we aren’t there yet. Trade tensions escalated after Trump threatened a 200% tariff on European wines and spirits in retaliation for the EU’s planned duties on American whiskey, amplifying concerns over an intensifying trade war.
Meanwhile, producer price inflation data came in softer than expected, with the headline figure remaining flat and the core rate dipping 0.1%, reinforcing yesterday’s cooler CPI report. In corporate news, Adobe shares plunged 13.8% after issuing a weak revenue outlook, while Intel surged 14.6% following the announcement of a new CEO. Souring sentiment has already prompted a number of economists to cut their outlooks on the US economy. Goldman’s Jan Hatzius on Monday slashed his GDP forecast for 2025 to 1.7% from 2.4% and boosted his inflation outlook. And Wall Street strategists are getting more pessimistic about the performance of US stocks. Guidance from blue-chip US companies has been deteriorating as well. Two of the biggest US airlines have slashed their forecasts, while Walmart Inc., a barometer of US consumer strength, also warned of weakness ahead.
Time for a Stagflation Trade????. Stocks that generate steady cash flows no matter how weak the economy is. Defensive sectors like health care, energy and consumer staples have been the top S&P 500 performers in 2025. Or long those and short commodities.
AUSTRALIAN EQUITY MARKET WRAP
The S&P/ASX 200 Index dropped 0.48% to close at 7,749 on Thursday, erasing earlier gains as commodity and banking stocks led the decline. Investors remained cautious amid ongoing trade uncertainties, following the implementation of US President Donald Trump’s steel and aluminum tariffs on Wednesday. The move triggered retaliatory measures from the European Union and Canada, prompting Trump to threaten additional tariffs and reiterate warnings of reciprocal duties next month.
Meanwhile, Prime Minister Anthony Albanese reaffirmed that Australia would not impose retaliatory tariffs on the US, opting instead to continue seeking an exemption. He warned that countermeasures could raise costs for Australian consumers and fuel domestic inflation. Among the biggest losers were BHP Group (-1.8%), Macquarie Group (-1.2%), and Westpac Banking (-1.5%).