In recent trading, the U.S. benchmark equity indexes faced declines as traders closely monitored updates regarding tariffs and layoff reports. The Nasdaq Composite index experienced a notable drop of 2.5%, reaching 18,093.7 by midday Thursday. Simultaneously, the S&P 500 Index saw a decline of 1.9%, closing at 5,732.1.
The Dow Jones Industrial Average also fell by 1.2%, settling at 42,508.3. All market sectors ended the day with losses, particularly the consumer discretionary sector, real estate, and technology stocks. The U.S. government is temporarily suspending tariffs on specific Mexican goods under a trade agreement, the United States-Mexico-Canada Agreement (USMCA), as stated by President Donald Trump in a recent social media update.
This tariff exemption is set to remain in effect until April 2. In a further development, the Trump administration announced a one-month delay on imposing tariffs on automakers whose vehicles comply with the USMCA, reflecting an effort to mitigate trade tensions during a challenging economic period. Turning to U.S.
Treasury yields, there were mixed results on Thursday. The yield on the 10-year Treasury note increased by 1.5 basis points, standing at 4.28%, while the two-year yield remained relatively stable at 3.99%. In the realm of employment, February brought concerning news as job cuts reached their highest level since July 2020.
This trend has been propelled by reductions in government workforce numbers, according to a report from Challenger Gray & Christmas. Andrew Challenger, the senior vice president of the company, commented, "With the impact of the Department of Government Efficiency actions, as well as canceled government contracts, fear of trade wars and bankruptcies, job cuts soared in February." Looking ahead, the Bureau of Labor Statistics is anticipated to release a report on Friday indicating that the U.S.
economy added approximately 160,000 nonfarm jobs in February, reflecting a rise from January's total of 143,000 new jobs as per a survey conducted by Bloomberg. In terms of individual companies, MongoDB ($MDB) faced significant losses, with its shares plummeting nearly 25%, marking it as the worst performer on the Nasdaq following the release of a disappointing full-year financial outlook.
On a more positive note, Burlington Stores ($BURL) saw its shares surge by 9.3% intraday as the off-price retailer reported fiscal fourth-quarter results that exceeded market expectations, suggesting that ongoing economic uncertainty may actually benefit discount retailers. Kroger ($KR) reported fiscal fourth-quarter earnings that were better than anticipated, although its revenue fell short of forecasts, causing the company to provide a full-year outlook that did not meet Wall Street's expectations.
Nevertheless, Kroger's shares rose by 2.4% during intraday trading. Finally, in commodity markets, West Texas Intermediate crude oil prices remained relatively stable at $66.32 a barrel. Gold prices climbed by 0.1%, reaching $2,927.40 per troy ounce, while silver increased by 0.6% to settle at $33.33 per ounce..