US stocks fell on Thursday as economic concerns grew and investors digested the latest inflation data , President Trump's trade offensive , and a looming US government shutdown.
The S&P 500 ( ^GSPC ) dropped 1% to inch closer towards correction territory, while the tech-heavy Nasdaq Composite ( ^IXIC ) shed 1.7% on the heels of a rebound for both gauges. The Dow Jones Industrial Average ( ^DJI ) nudged 1% lower.
Markets remain on edge after days of being whipsawed by fresh headlines . Stocks got a boost on Wednesday amid relief about a cooler-than-expected inflation report , which buoyed tech shares , in particular.
But uncertainty around Trump's tariff policy continues to grip Wall Street, and his trade war has only intensified this week . The president has vowed to respond to tariffs planned by the EU and Canada in response to US duties on steel and aluminum imports — most notably leading off Thursday by threatening a 200% tariff on imports of EU wines and spirits.
Read more: The latest on Trump's tariff plans
Meanwhile, the risk of a US government shutdown adds another layer of worry for investors already assessing the impact of DOGE job cuts on the economy. Senate Democrats plan to block a Republican spending bill to avert the weekend shutdown, Minority Leader Chuck Schumer said.
Wholesale inflation data released on Thursday morning showed prices did not change in February, compared to an expected month-over-month increase of 0.3%. On an annualized basis, the Producer Price Index rose 3.2%, versus a consensus estimate of 3.3%.
The easing in price pressures is expected to factor into expectations for interest rate cuts ahead of the Federal Reserve meeting next week.
LIVE 14 updates