S&P 500 enters correction territory as tariff threats weigh on markets

Stocks tumbled as President Donald Trump opened up a new front in the trade war, promising to impose massive tariffs on the European Union after the bloc prepared a response to levies on steel and aluminum.

The S&P 500 fell and is now down 10% from its February 19 peak in what is often called a “correction” (but why does this feel so wrong?).

Consumer discretionary was the worst-performing S&P 500 sector ETF, off 2.5%. While Tesla’s big losses certainly contributed, they were far from the only factor as traders ditched consumer-oriented stocks. Utilities was the lone sector ETF to go positive on the day.

Adobe cratered, ending at the bottom of the S&P 500’s leaderboard after evidence that its AI efforts are failing to translate into repeat customers.

Intel was the best-performing S&P 500 stock, up double digits after appointing a new CEO. Dollar General also performed well after delivering a top- and bottom-line beat, even as it unveiled guidance for 2025 that came in light relative to analysts’ estimates. American Eagle also exceeded expectations on earnings, but the stock was dragged down by management’s poor outlook.