Stocks weathered another rough day Thursday with investors on edge over new tariff threats and mixed inflation news.

The S&P 500 dropped 1.4% and suffered its first correction since October 2023, a decline of more than 10% from its Feb. 19 record high. The tech-heavy Nasdaq Composite declined nearly 2%. The Dow Jones Industrial Average fell 1.3%.

President Trump threatened to impose 200% tariffs on alcohol imports from the European Union after the bloc hit back at his levies on steel and aluminum imports.

Investors eyed an inflation gauge that showed wholesale prices held steady in February-although prices charged for eggs soared. Inflation concerns have intensified as Trump's import levies risk fueling price pressures, while also weighing on growth.

Earlier this month, the Trump administration imposed a 25% import tariff on goods from Mexico and Canada, then suspended the tariffs for some of those goods. Canada imposed its own retaliatory tariffs. "That pattern of announcements and imposition of tariffs in fairly rapid fashion is unsettling the markets," said Jason Pride, chief of investment strategy and research at Glenmede.

The Nasdaq suffered a correction last week and through Thursday's close was down more than 14% from its December high. The Dow was down more than 9% from its own record.

Congress could create more uncertainty. Senate Democrats will discuss whether to approve the Republicans' funding bill, or trigger a shutdown of the government this weekend.

Investors sought out haven assets. Gold prices climbed 1.5% to $2,984.30 a troy ounce, another record high. Treasury yields fell as prices rose. The 10-year yield settled at 4.275%,down from Wednesday's 4.315%.

Meanwhile, Russia rejected a U.S.-brokered plan for a ceasefire in Ukraine, saying the proposed 30-day truce would help Kyiv regroup. Stocks in Asia mostly fell. In Europe, shares of alcohol producers dropped after Trump's latest tariff threat. Intel stock rallied after the struggling semiconductor company appointed a new chief executive.

Portfolio News

Active Trading Portfolio: Two trades yesterday - 1 win on EUR.GBP and 1 loss on EUR.JPY. We will notify our premium and pro members via whats app when we decide to place the trades. Check Out the Active Trading Portfolio.
Option Trading Portfolio: We're eyeing the EUR/USD and contemplating selling the 1.12 April Calls on the EUR/USD June futures! Yesterday was the second day that the EUR.USD failed to make a higher high. We will wait until Tuesday before placing this trade, if we decide to do so.

We like option trades on SPY to capitalise on this volatility. We are waiting on a spike in the VIX before participating ..we are still not sure that this selloff is done just yet.

Check Out the Option Trading portfolio.
Buy and Hold Portfolio: Our long-term buy-and-hold portfolio is thriving. We'll promptly notify our Pro and Premium members via WhatsApp when we initiate new purchases. We have over 14 stocks ready to go when this selloff is complete. Check out out the Buy and Hold Portfolio.
The Vix: The VIX, often called the fear index, has been trending upwards, but we believe it has room to climb. We view a sharp VIX surge as a valuable contrarian indicator, often signaling a prime opportunity to buy into equities. We haven't yet seen the level of VIX volatility we're looking for, but we'll promptly inform our members upon its arrival. Until then, we recommend maintaining a patient approach.