US stocks tumble, worsening losses amid trade war

U.S. stocks tumbled on Thursday, deepening losses suffered since the outbreak of a trade war set off by President Donald Trump's tariffs.

The Dow Jones Industrial Average closed down 535 points, or 1.3%, while the S&P 500 dropped 1.4%. The tech-heavy Nasdaq declined nearly 2%.

The S&P 500 closed down more than 10% since a peak attained last month, meaning the decline officially qualified as a market correction. It marked the index's first correction since October 2023.

Trading opened minutes after Trump threatened a 200% tariff on champagne and other alcohol products from the European Union, escalating a global trade war that has roiled markets.

Hours later, Trump stood firm on his tariff plans. "I'm not going to bend at all," he told reporters at the White House.

Tesla, the electric carmaker run by Elon Musk, fell about 5.5% in early trading on Thursday. The decline erased some gains from Wednesday, a day after Trump announced plans to purchase Tesla vehicles at an event at the White House. Tesla's stock value has fallen just over 40% this year.

A continued back-and-forth over international tariffs is hanging over the U.S. economy, along with a looming government shutdown with a deadline on Friday.

Federal officials said Wednesday that consumer prices climbed 2.8% in February over the same year-earlier month, meaning inflation cooled more than economists expected.

After initially modest gains, the Dow Jones Industrial Average closed on Wednesday down about 0.2%, while the S&P 500 climbed 0.5%. The tech-heavy Nasdaq increased 1.2%.

This is a developing story. Please check back for updates.