By Alex Financials

Stock Market Today: Dow, S&P 500, and Nasdaq Slide Amid Tariff Uncertainty

Dow Jones Industrial Average (^DJI), S&P 500 (^GSPC), and Nasdaq Composite (^IXIC) all experienced declines on Thursday, March 6, 2025, as investors grappled with ongoing tariff uncertainties and mixed earnings reports. The Dow fell by approximately 0.5%, the S&P 500 dropped 0.8%, and the Nasdaq, heavily weighted with tech stocks, slid by 0.9%.

Tech Sector Takes a Hit

The technology sector was particularly impacted, with Marvell Technology (MRVL) leading the downturn. The company’s shares plummeted by over 16% after its quarterly sales forecast fell short of expectations, especially concerning returns from artificial intelligence investments. Other semiconductor firms like NVIDIA (NVDA), Broadcom (AVGO), and AMD (AMD) also saw declines.

Tariff Exemptions Provide Some Relief

Commerce Secretary Howard Lutnick hinted at additional temporary exemptions under the Trump administration’s existing 25% tariff regime affecting Canada and Mexico. This news helped mitigate some of the market’s losses. Lutnick suggested that goods and services aligned with the United States-Mexico-Canada Agreement (USMCA) might be exempted from tariffs for one month.

Automakers Benefit from Tariff Relief

On Wednesday, Ford Motor (F) and General Motors (GM) saw significant stock gains after President Donald Trump announced a temporary exemption for U.S. automakers from the 25% tariffs on Mexican and Canadian imports. Both companies’ shares jumped over 5%, contributing to a broad market rally.

Mixed Reactions to AI Investments

The AI investment landscape showed signs of strain as Marvell Technology (MRVL) and other tech firms reported disappointing forecasts. Meanwhile, Alibaba (BABA) unveiled its own AI model, positioning itself against competitors like OpenAI and DeepSeek. This development raises questions about the sustainability of the AI investment surge in the U.S.

Labor Market Concerns Add to Market Volatility

Futures linked to the Dow and Nasdaq 100 declined sharply, reflecting concerns in the labor market. Last month, U.S. companies announced plans to cut 172,017 positions, marking a 103% increase from January and the highest figure for February since 2009, according to Challenger, Gray & Christmas.

Global Markets React to Tariff News

European shares opened lower, and U.S. futures dropped more than 1% as Asian markets tracked a rebound on Wall Street. The uncertainty surrounding Trump’s tariff policies continues to weigh heavily on global markets.

Conclusion

The stock market remains volatile as investors navigate the complexities of tariff policies, mixed earnings reports, and labor market concerns. While temporary tariff exemptions provide some relief, the broader implications of these policies on corporate profits and consumer prices continue to create uncertainty. Investors will be closely watching for further developments in trade negotiations and economic indicators in the coming days.