U.S. stocks dropped as the costs of U.S. restrictions on global trade compounded.
The S&P 500 fell 2.2% Wednesday. The Dow lost 1.7%, and the Nasdaq composite sank 3.1%.
Losses accelerated after the Federal Reserve’s head said President Donald Trump’s tariffs could push economic growth lower and inflation higher than earlier thought. Nvidia sank after saying new U.S. restrictions on exports to China will chisel billions of dollars off its results.
United Airlines said conditions are so impossible to predict that it gave two forecasts for its financials this upcoming year, one if there’s a recession and another if not.
On Wednesday:
The S&P 500 fell 120.93 points, or 2.2%, to 5,275.70.
The Dow Jones Industrial Average fell 699.57 points, or 1.7%, to 39,669.39.
The Nasdaq composite fell 516.01 points, or 3.1%, to 16,307.16.
The Russell 2000 index of smaller companies fell 19.44 points, or 1%, to 1,863.48.
For the week:
The S&P 500 is down 87.66 points, or 1.6%.
The Dow is down 543.32 points, or 1.4%.
The Nasdaq is down 417.30 points, or 2.5%.
The Russell 2000 is up 3.27 points, or 0.2%.
For the year:
The S&P 500 is down 605.93 points, or 10.3%.
The Dow is down 2,874.83 points, or 6.8%.
The Nasdaq is down 3,003.63 points, or 15.6%.
The Russell 2000 is down 366.68 points, or 16.4%.