US benchmark equity indexes are set to close lower on Thursday, largely influenced by President Trump's declaration of a staggering 200% duty on European Union alcohol exports. This retaliation is in response to a tariff that was placed on US whiskey, stirring concerns across the market. The Dow Jones Industrial Average experienced a notable drop of 1.4%, bringing it to 40,765.7.
Similarly, the Nasdaq Composite fell by 2.1%, settling at 17,280.7, while the S&P 500 index fell by 1.5% to reach 5,512. These declines spanned all sectors, yet consumer discretionary and communication services were acknowledged as the worst-performing areas of the market. On a more positive note, Intel emerged as the top gainer on the S&P 500, with shares soaring nearly 15%.
This surge followed the announcement that the company appointed semiconductor industry veteran Lip-Bu Tan as its new chief executive, effective March 18. Dollar General also reported a 4.1% increase in its shares. Despite having its fiscal fourth-quarter earnings fall short of Wall Street's expectations, Dollar General's sales numbers exceeded estimates, demonstrating resilience in the retail sector. Conversely, Adobe struggled significantly as the worst performer on the S&P 500, with shares declining by 14%.
According to Oppenheimer, the software maker's fiscal first-quarter results exhibited concerning trends, including a pronounced weakness in net-new digital media annualized recurring revenue, smaller beat magnitudes, and a cautious outlook for the upcoming quarter. In the bond markets, the 10-year US Treasury yield decreased by 4.7 basis points, resulting in a yield of 4.3%.
The two-year Treasury rate observed a similar downward trend, with a drop of 4 basis points to land at 4%. Meanwhile, crude oil prices showcased volatility as April West Texas Intermediate crude oil futures fell by 1.5%, now priced at $66.63 per barrel. Investors are closely monitoring these developments, as global trade tensions and mixed earnings results continue to shape market sentiment..