US stock market drops on concerns about escalating tariff tensions

As reported by Reuters, the US stock market showed a sharp decline on Thursday. The drop was triggered by concerns that the escalating tariff tensions between the US and its trading partners will accelerate inflation and slow down the economic growth.

Earlier, in response to the US duties on steel and aluminum imports, the European Union imposed a 50% tax on American whiskey exports. Afterward, President Donald Trump threatened to launch a 200% tariff on imports of European wines and spirits, the agency informs.

Mike Dixon of Horizon Investments points out the negative sentiment in the US stock market due to the uncertainty surrounding tariffs and other economic factors.

This resulted in the S&P 500 closing Thursday 10.1% below its February 19 record closing high, confirming that the index has been in a correction since then, according to Reuters.

Meanwhile, traders are closely watching the vote on the US government funding bill. Its rejection would trigger a partial government shutdown, the news agency notes.