By Angus Berwick and Heather Gillers

Stocks weathered another rough day Thursday with investors on edge over new tariff threats and mixed inflation news.

The S&P 500 dropped 1.4% and suffered its first correction since October 2023, a decline of more than 10% from its Feb. 19 record high. The tech-heavy Nasdaq Composite declined nearly 2%. The Dow Jones Industrial Average fell 1.3%.

President Trump threatened to impose 200% tariffs on alcohol imports from the European Union after the bloc hit back at his levies on steel and aluminum imports.

Investors eyed an inflation gauge that showed wholesale prices held steady in February-although prices charged for eggs soared. Inflation concerns have intensified as Trump's import levies risk fueling price pressures, while also weighing on growth.

Earlier this month, the Trump administration imposed a 25% import tariff on goods from Mexico and Canada, then suspended the tariffs for some of those goods. Canada imposed its own retaliatory tariffs.

"That pattern of announcements and imposition of tariffs in fairly rapid fashion is unsettling the markets," said Jason Pride, chief of investment strategy and research at Glenmede.

The Nasdaq suffered a correction last week and through Thursday's close was down more than 14% from its December high. The Dow was down more than 9% from its own record.

Congress could create more uncertainty. Senate Democrats will discuss whether to approve the Republicans' funding bill, or trigger a shutdown of the government this weekend.

Investors sought out haven assets. Gold prices climbed 1.5% to $2,984.30 a troy ounce, another record high. Treasury yields fell as prices rose. The 10-year yield settled at 4.275%,down from Wednesday's 4.315%.

Meanwhile, Russia rejected a U.S.-brokered plan for a ceasefire in Ukraine, saying the proposed 30-day truce would help Kyiv regroup. Stocks in Asia mostly fell. In Europe, shares of alcohol producers dropped after Trump's latest tariff threat. Intel stock rallied after the struggling semiconductor company appointed a new chief executive.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

March 13, 2025 16:30 ET (20:30 GMT)

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