S&P 500: Tech Stocks Lead Sell-Off as Market Correction Deepens, Tesla and Apple Slide

Stocks Slide as S&P 500 Hits 10% Correction on Trade Tensions

Stocks extended their decline on Thursday, with major indexes sliding further as investors reacted to escalating trade tensions. The S&P 500 fell 1.1%, confirming a 10% pullback from its recent high. The Dow Jones Industrial Average dropped 483 points, or 1.2%, slipping below the 41,000 level for the first time in weeks. The Nasdaq Composite tumbled 1.6%, weighed down by losses in tech heavyweights Tesla and Apple.

How Are Tariff Threats Impacting the Market?

Investor sentiment soured after former President Donald Trump threatened steep tariffs on European alcoholic imports. Trump proposed a 200% levy in response to the EU’s 50% tariff on whisky, signaling broader trade restrictions set to take effect in early April. Markets have struggled under the uncertainty of trade policy shifts, with concerns mounting over potential disruptions to corporate profits and consumer spending.

The sell-off has intensified over the past week, with the S&P 500 and Nasdaq down 4.2% and 4.8%, respectively. The Dow is on pace for a 4.6% weekly decline, its worst since March 2023. The Russell 2000, which tracks small-cap stocks, is nearing bear market territory after plunging nearly 19% from its recent peak.

Which Sectors Were Hit the Hardest?

Consumer discretionary stocks took the steepest hit, falling 2.4% as investors pulled back from retailers and travel companies. Technology stocks also declined, with the sector losing 1.1% as investors reduced exposure to high-growth names. Communication services dropped 2.1%, reflecting pressure on media and telecom firms.

Real estate stocks fell 1.6%, weighed down by rising uncertainty over interest rates, while industrials and energy sectors each lost about 0.8%. Defensive plays such as consumer staples and utilities saw smaller losses of 0.5% and 0.08%, respectively, as investors sought relative safety.

Which Stocks Led the Decline?

Tech giants Apple and Tesla dragged the Nasdaq lower, with both stocks posting losses of over 2%. Chipmakers also saw pressure, with Nvidia slipping 1.9% and AMD down 2.3%. Within consumer discretionary, Amazon and Nike both shed more than 2.5%.

Financials showed some resilience, with major banks like JPMorgan and Goldman Sachs limiting their losses to under 1%. Meanwhile, energy names ExxonMobil and Chevron declined 0.7% and 0.9%, respectively, as oil prices remained stable.

Will the Fed Adjust Its Rate Stance?

Despite a softer producer price index (PPI) report suggesting inflation may be easing, investors remain concerned about trade risks. Treasury Secretary Scott Bessent reassured markets that the administration is focused on long-term economic stability, but traders remain skeptical.

The Federal Reserve has yet to signal any immediate rate cuts, keeping markets on edge. Analysts are closely watching for further economic data and Fed commentary, with volatility expected to persist in the near term.

More Information in our Economic Calendar.