U.S. equity indexes experienced a sharp decline on Thursday as investor concerns centered on U.S. trade policy. Uncertainty over the Trump administration’s tariff decisions overshadowed markets, even after an announcement that tariffs on certain goods from Mexico would be postponed until April. As the week approached its final trading day, attention began shifting to the labor market ahead of the Bureau of Labor Statistics’ February jobs report, set for release on Friday. Recent indicators suggested a slowdown in hiring, raising questions about the economy’s strength.
The S&P 500 fell by 1.8%, while the Dow Jones Industrial Average dropped 1%. The tech-heavy Nasdaq Composite was particularly affected, plunging 2.6%. Shares of companies tied to artificial intelligence (AI) technologies declined after Marvell Technology (MRVL), a semiconductor manufacturer, issued a lackluster outlook for its fiscal first quarter. Although its sales and profit forecasts aligned with consensus expectations, Bank of America analysts had anticipated stronger AI-driven growth. Marvell’s stock plummeted nearly 20%.
The subdued forecast from Marvell impacted several AI-related stocks. Palantir Technologies (PLTR), a data analytics software provider that benefited from AI enthusiasm last year, saw its shares drop 10.7%, the largest decline among S&P 500 components. This extended a recent sell-off, exacerbated by a regulatory filing indicating that CEO Alex Karp plans to sell a significant portion of his stake. Texas-based electricity generator Vistra (VST), which gained significantly in 2024 due to optimism around powering AI data centers, fell 9.8%. Similarly, Constellation Energy (CEG), a nuclear-focused utility, dropped 9.4%.
Netflix (NFLX) shares declined 8.5% following a prediction by research firm MoffettNathanson of slowing subscriber growth. Analysts attributed recent strong subscriber additions to Netflix’s crackdown on password sharing, suggesting the company may struggle to maintain its growth trajectory.
In contrast, MarketAxess Holdings (MKTX), which operates a digital trading platform for fixed-income securities, reported strong year-over-year and month-over-month gains in average daily volume, driven by strength in emerging markets and Eurobonds despite weakness in U.S. credit. MarketAxess shares surged 5.3%, leading the S&P 500’s daily performance. Archer-Daniels-Midland (ADM), an agribusiness firm, saw its shares rise 4.9% after recovering from recent losses tied to tariff concerns. Reports that agricultural products might receive tariff exemptions, including Canadian potash, contributed to the rebound.
— news from Investopedia