The US markets ended in red, as President Donald Trump clarified that previously paused 25 percent tariffs on imports from Mexico and Canada will go into effect on March 4th. Trump said an additional 10 percent tariff on imports from China will also be imposed on that date, claiming drugs are pouring into the U.S. from Mexico and Canada and that a large percentage of the drugs are supplied by China. The president reportedly also said that the April 2 date for reciprocal tariffs on other U.S. trade partners will ‘remain in full force and effect’. Traders were reacting to the latest batch of U.S. economic data, including a Labor Department report showing first-time claims for U.S. unemployment benefits climbed much more than expected in the week ended February 22. Traders took note of separate report released by the Commerce Department showed durable goods orders surged by much more than expected in January, although the growth was largely due to a spike in volatile orders for transportation equipment.
On sectorial front, Semiconductor stocks saw substantial weakness on the day, resulting in a 6.1 percent nosedive by the Philadelphia Semiconductor Index. The index plunged to its lowest closing level in over five months. Considerable weakness was also visible among computer hardware stocks, with the NYSE Arca Computer Hardware Index plummeting by 5.1 percent. Gold stocks also moved sharply lower along with the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 3.8 percent.
Dow Jones Industrial Average decreased 193.62 points or 0.45 percent to 43,239.5, Nasdaq decreased 530.84 points or 2.78 percent to 18,544.42 and S&P 500 was down by 94.49 points or 1.59 percent to 5,861.57.
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