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.

Tariffs will be a headwind to corporate earnings since businesses have only two options: Absorb the cost increases, or pass the cost increases along.

The latest sell-off in the US stock market isn’t unusual – S&P 500 Index corrections of -5% to -10% from previous peaks are relatively common. What’s different and unusual this time is the trigger: A trade war initiated by the President of the United States.

What Happened? Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) jumped 6.9% in the morning session as markets experienced a boost after data from the Bureau of Labor Statistics revealed that inflation for the month of February 2025 came in better than expected.