(Reuters) – The S&P 500 dipped 1.4% on Thursday, leaving it down 10.1% from its record high close on February 19 and confirming the widely followed benchmark is in a correction as an escalating tariff war between the U.S. and its top trade partners fuels concerns about a recession.
The confirmation that the S&P 500 has fallen into a correction marks a significant shift in market sentiment as the index – widely considered the best gauge of large U.S. companies and broader stock market health – joins the Nasdaq in showing signs of deepening investor concerns over trade tensions.
Wall Street’s latest decline came after U.S. President Donald Trump said he would levy a 200% duty on European wine and cognac imports unless the EU removes surcharges on U.S. whiskey. He had previously threatened to penalize the bloc if it imposed retaliatory tariffs on American goods next month.
The S&P 500 ended the session at 5,521.52 points.
The tech-heavy Nasdaq confirmed last week it had been in a correction since peaking last December.
(Reporting by Noel Randewich, Editing by Franklin Paul and Deepa Babington)
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