The NASDAQ, a prominent stock market index heavily weighted towards technology companies, has recently experienced a significant downturn, plunging into correction territory due to uncertainties surrounding President Trump’s tariff policies. This development occurred as the S&P 500 also dropped to its lowest point since November. The NASDAQ Composite, known for its tech-heavy composition, plummeted by over 2.6%, marking a decline of more than 10% from its peak in December and officially entering correction territory.

Investors have been grappling with the ongoing trade war uncertainties, particularly concerning how far President Trump is willing to negotiate on tariffs. The market volatility intensified after Trump announced a temporary pause on tariffs for some Mexican and Canadian goods, triggering fluctuations in various sectors. Tech stocks, in particular, faced selling pressure following Marvell’s disappointing sales forecast, which fell short of investor expectations for AI-related returns. This led to a nearly 19% decline in Marvell’s shares, with other chipmakers like Nvidia, Broadcom, and AMD also experiencing losses.

Amidst these developments, market participants closely monitored economic indicators such as the weekly jobless claims data, which showed a decrease in initial claims compared to the previous week. However, concerns over soft economic data and the potential impact on US economic growth have raised fears of stagflation, a situation characterized by stagnant growth and high inflation. The upcoming jobs report is anticipated to provide further insights into the health of the labor market and overall economy.

Furthermore, the market saw wild swings in the S&P 500, reminiscent of previous periods of heightened volatility linked to economic uncertainties. The recent market turbulence has underscored the importance of key economic data releases and policy decisions in shaping investor sentiment and market direction. As the market awaits crucial updates, including the impact of tariffs and economic indicators, investors remain vigilant amid the evolving market dynamics and geopolitical developments influencing stock market movements.