A fresh wave of selling sent the S&P 500 spiraling into technical correction territory on Thursday, falling 10% from its all-time high, as trade tensions escalated following President Donald Trump's latest tariff threats.

In a volatile session Thursday, the S&P 500 – as tracked by the SPDR S&P 500 ETF Trust SPY – closed at 5,521 points, marking a 10% drop from its Feb. 19 peak of 6,147.

The index now sits 3.8% below its 200-day moving average of 5,738, a level many traders consider a key threshold.

Only 37% of S&P 500 stocks are trading above this moving average, the lowest proportion since November 2023—a sign of broad-based market weakness.

Trade War Jitters Shake Markets

The sell-off accelerated after Trump took to his Truth Social platform, threatening to impose 200% tariffs on all European alcoholic products in response to the EU's decision to slap a 50% tariff on American whiskey.

Earlier this week, Canada announced 25% retaliatory duties on over $20 billion worth of U.S. goods, while the EU planned to impose counter-tariffs starting in April.

Despite the tariff turmoil, recent inflation data painted a more optimistic picture for the U.S. economy. Both consumer and producer prices have come in below expectations this year, reinforcing hopes that the Federal Reserve’s disinflation efforts are gaining traction. Markets are pricing in three Fed interest rate cuts this year.

Yet, markets remain laser-focused on trade policy risks. Investors worry that escalating tariffs could undermine corporate earnings, disrupt supply chains, and reignite inflationary pressures—potentially forcing the Fed to rethink its rate-cut trajectory.

Thursday’s Top 5 Gainers

Top 5 Losers

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