The stocks continued their sharp decline on Thursday as escalating concerns over trade policy uncertainty triggered a broad sell-off across major indices. The Dow Jones Industrial Average dropped more than 400 points, while the S&P 500 and Nasdaq also suffered steep losses. The Nasdaq Composite officially entered correction territory, down over 10% from its recent peak, as technology stocks faced aggressive selling pressure. Market sentiment remained fragile despite the White House announcing a temporary pause on some tariffs for Canadian and Mexican imports until April 2. The move briefly lifted markets on Wednesday, but renewed fears over the long-term impact of trade policy weighed heavily on investors. With traders awaiting Friday’s closely watched US employment report, uncertainty remains elevated heading into the weekend.

Key Takeaways:

  • Dow Tumbles 400 Points as Trade Fatigue Fuels Sell-off: The Dow Jones Industrial Average fell 427.51 points, or 0.99%, closing at 42,579.08. Intraday, the Dow briefly dropped over 600 points, as uncertainty around US trade policy intensified investor concerns. Week-to-date losses reached approximately 2.9%, putting the index on pace for its worst week since September 2024.
  • S&P 500 Extends Weekly Losses Amid Tariff Uncertainty: The S&P 500 declined by 1.78%, closing at 5,738.52, bringing its weekly drop to around 3.6%. Investor sentiment weakened further after recent US economic data showed layoffs surging to their highest levels since July 2020 and manufacturing and services PMIs falling below expectations.
  • Nasdaq Drops into Correction Territory Amid Tech Rout: The Nasdaq Composite sank 2.61%, finishing at 18,069.26 and entering correction territory after falling more than 10% from its recent high. The Nasdaq is now down over 4% for the week, marking its worst performance since September 2024.
  • European Stocks End Higher after ECB Interest Rate Cut: European markets closed mostly higher after the European Central Bank cut interest rates by 0.25% to 2.5%. The Stoxx 600 gained 0.13%, while Germany’s DAX jumped 1.67% to reach a new record high. France’s CAC 40 rose by 0.64%, Italy’s FTSE MIB advanced 0.91%, though the FTSE 100 fell 0.83%, closing at 8,682.84. ECB President Christine Lagarde noted an upward revision in the Eurozone’s 2025 inflation forecast to 2.3%, driven by higher energy costs.
  • Asia-Pacific Markets Mostly Higher Amid Tariff Concessions: Asian indices were broadly positive as markets reacted favourably to the postponement of certain US tariffs. Japan’s Nikkei rose 0.77%, while the Topix climbed 1.22%. Hong Kong’s Hang Seng advanced 2.47%, while mainland China’s CSI 300 increased 1.38% following Beijing’s announcement of a fiscal deficit increase to around 4% of GDP. South Korea’s Kospi rose 0.7%, but Australia’s S&P/ASX 200 slipped 0.57%.
  • US Jobless Claims Dip Despite Surge in Layoffs: Initial US jobless claims unexpectedly fell by 21,000 to 221,000, below expectations of 235,000, despite widespread federal workforce reductions announced in February. Continuing claims increased by 42,000, reaching nearly 1.9 million. However, layoffs surged dramatically, totalling 172,017 for February, the highest monthly number since July 2020.
  • US Treasury Yields Rise Slightly as Investors Assess Tariff Developments: The benchmark 10-year Treasury yield edged higher by approximately 3 basis points to 4.292%, while the 2-year yield declined about 1 basis point to 3.971%. Investors remain cautious amid mixed signals from the White House on tariff exemptions for Mexican and Canadian imports
  • Oil Stabilises in Volatile Trading on Tariff Uncertainty: Brent crude settled marginally higher, up 0.2% at $69.46 a barrel, while US West Texas Intermediate (WTI) crude gained 0.1%, ending at $66.36 a barrel. Prices remained volatile amid uncertainty surrounding tariffs and the OPEC+ decision earlier this week to raise output quotas for the first time since 2022.

FX Today:

  • EUR/USD Maintains Recent Gains Amid Market Volatility: EUR/USD finished virtually unchanged at 1.0782 on Thursday. The pair ranged narrowly, opening at 1.0787, rising briefly to 1.0853 before retreating to a low of 1.0765. EUR/USD sustained its bullish posture above major moving averages, including the 50-day SMA at 1.0409, the 100-day SMA at 1.0516, and the 200-day SMA at 1.0725. Immediate resistance at 1.0850 remains critical, with a decisive break potentially driving the pair towards 1.0900, last tested in October 2024. Support lies at 1.0750, followed by 1.0700 should selling pressure return.
  • GBP/USD Pauses After Recent Gains, Closes Slightly Lower: GBP/USD settled marginally lower at 1.2882, down 0.10% in Thursday’s session. After opening at 1.2898, the pair briefly rose to 1.2924 before declining to a session low of 1.2865. Despite today’s slight pullback, GBP/USD remains firmly in an upward trend, trading significantly above key averages such as the 50-day SMA at 1.2483, the 100-day SMA at 1.2627, and the 200-day SMA at 1.2788. Support is now seen at 1.2850, with further downside potential toward 1.2800. Immediate resistance remains at 1.2950, and a decisive break could open the door to retesting the 1.3000 level, last seen in September 2024.
  • USD/JPY Extends Declines, Falls Below Key Level: The USD/JPY pair closed Thursday at 147.82, declining sharply by 1.048 points or 0.70%. After opening at 148.87, the pair briefly touched a session high of 149.33 before plunging to its lowest point at 147.30. USD/JPY’s drop below the crucial psychological support at 150.00—last broken in November 2024—reflects sustained bearish momentum driven by a weaker US dollar and heightened demand for the yen as investors seek safety amid ongoing economic uncertainty. Further downside support lies at 147.00, and a break below this level could extend losses toward the next support at 146.00, a level last seen in October 2024. Conversely, resistance remains firm at 150.00.
  • USD/CAD Edges Lower Amid Tariff Volatility: USD/CAD fell to 1.4306, declining 0.19% amid continued market uncertainty surrounding US tariffs on Canadian imports. Opening the session at 1.4333, the pair reached a high of 1.4375 but dropped sharply to a low of 1.4237, driven by fluctuating investor sentiment linked to ongoing trade negotiations. The pair’s slip back below the 50-day SMA at 1.4345 points to potential further declines, with immediate support at 1.4250 followed by the critical 1.4200 level. Resistance emerges at 1.4350, with stronger selling likely around 1.4400 if recovery attempts materialise.
  • AUD/USD Declines Amid Risk-Off Sentiment, Closes Below 0.6400 Resistance: AUD/USD ended Thursday’s session at 0.6357, down 0.67%, pressured by renewed market caution following disappointing US economic data and trade uncertainties. Earlier bullish momentum that took the pair briefly above the 50-day SMA at 0.6262 and toward the 100-day SMA at 0.6420 has since faded. Strong resistance persists at the 0.6400 mark. Support remains near the 0.6260 area, and a break below this level may lead to deeper declines toward 0.6200. Conversely, a sustained move above 0.6420 would clear the way toward testing the 200-day SMA at 0.6652.

Market Movers:

  • Marvell Technology Sinks on Mixed Guidance: Shares of Marvell Technology plunged 19.8% after the semiconductor company issued mixed first-quarter guidance. 
  • MongoDB Shares Plunge on Weak Guidance: Shares of database software company MongoDB plummeted 26.9% after issuing disappointing fiscal 2026 guidance. The company forecast adjusted earnings between $2.44 to $2.62 per share.
  • Victoria’s Secret Declines on Soft Revenue Outlook: Shares of Victoria’s Secret dropped 8.2% after the retailer forecast weaker-than-expected revenue guidance for the first quarter, projecting between $1.3 billion and $1.33 billion. 
  • BJ’s Wholesale Club Surges on Strong Earnings Beat: Shares of BJ’s Wholesale Club rallied 12.2% following a stronger-than-expected fourth-quarter earnings report. The big-box retailer reported adjusted earnings of 93 cents per share, surpassing analysts’ forecast of 88 cents. 
  • Zscaler Advances on Robust Q2 Earnings Results: Cybersecurity firm Zscaler saw shares rise by 2.9% after posting fiscal second-quarter results that beat analysts’ forecasts. Adjusted earnings came in at 78 cents per share on revenue of $648 million, surpassing analyst expectations for 69 cents per share and revenue of $636 million. 
  • Grindr Stock Falls After Reporting Widened Annual Loss: Grindr shares slid 16% following news of a significantly wider full-year net loss of $131 million, substantially larger than the previous year’s loss of $55.8 million. 
  • Veeva Systems Rises After Earnings Beat and Positive Outlook: Cloud computing provider Veeva Systems climbed 7.4% after reporting better-than-expected fourth-quarter results and offering upbeat guidance. 

Markets ended sharply lower on Thursday, with the Dow tumbling more than 400 points and the Nasdaq officially sliding into correction territory amid persistent trade policy uncertainty. Investors reacted negatively as temporary tariff concessions from the White House failed to soothe fears over the long-term impact of escalating trade tensions with Canada, Mexico, and China. Economic data showing a surge in layoffs to the highest monthly total since July 2020, coupled with disappointing US PMI figures, further intensified fears about the economic outlook. Although European markets reversed early losses following the ECB’s rate cut, global sentiment remained cautious.