The financial markets experienced significant losses as major indices continued their downward trajectory on Thursday. The Dow Jones Industrial Average fell by 537.36 points, equating to a decline of 1.3 percent, closing at 40,813.57 points. The Nasdaq Composite Index was down 345.44 points or 2 percent, ending the day at 17,303.01 points. Meanwhile, the S&P 500 Index recorded a drop of 77.78 points, marking a 1.4 percent decrease to settle at 5,521.52 points.
The S&P 500 witnessed its first correction since 2023, characterized by a fall exceeding 10 percent from its previous record high. This trend highlights the ongoing challenges facing the stock market amidst economic uncertainties and fluctuating market conditions.
Tamsin Wilding, principal and portfolio manager for fixed income at Leith Wheeler Investment Counsel Ltd., commented on the current market situation.
"We've had this volatility for a number of weeks now," noted Wilding.
She further added insights on the market's performance.
"The market continues to struggle to rally."
The Canadian dollar was also affected by the market turbulence, trading at 69.40 cents US compared to 69.49 cents US on Wednesday. This reflects the broader pressures facing currencies amid global economic concerns.
Crude oil prices saw a decrease as well, with the April contract down US$1.13, closing at US$66.55 per barrel. The decline in oil prices is part of the broader trend of declining commodity prices amid economic slowdowns and potential impacts from international trade policies.
Wilding also alluded to the broader economic context in light of recent trade tensions.
"I think it paints the picture that the economy was in a pretty different place (before) this escalation of tariffs. So there is somewhat of a buffer there."
