Stocks Plummet Amid Tariff Concerns and Disappointing Earnings

NEW YORK, March 6, 2025 — Stocks tumbled sharply Thursday as investor concerns surrounding new tariffs and disappointing earnings reports rippled through the market. The Dow Jones Industrial Average slid 427.51 points, or 0.99%, to close at 42,579.08, while the S&P 500 and Nasdaq Composite dropped 1.78% and 2.61%, respectively.

The sharp declines followed an announcement that U.S. tariffs on Canadian, Mexican, and Chinese imports would take effect this week, prompting fears of retaliatory measures. Canada and China were quick to respond with their own tariffs, adding to market uncertainties. “To the extent that another country’s practices harm our own economy and people, the United States will respond,” Treasury Secretary Scott Bessent stated, reinforcing the administration’s America-first trade policy.

Investor sentiment turned further negative when major companies, including Marvell Technology and Victoria’s Secret, released earnings reports that fell short of expectations. Victoria’s Secret reported an 8.2% decline in shares after issuing lower-than-expected first-quarter revenue guidance, estimating revenue between $1.3 billion and $1.33 billion.

Marvell Technology shares plummeted 19.8%, despite reporting adjusted earnings of 60 cents per share on $1.82 billion in revenue, beating analysts’ predictions. This mixed guidance, combined with high expectations from other major tech companies, added to investor frustration. Barclays noted that stocks within the artificial intelligence sector, despite some having solid fundamentals, also faced punishment from the market.

Other semiconductor stocks mirrored Marvell’s downturn, with Nvidia shares dropping 5.7%, while Taiwan Semiconductor Manufacturing and ON Semiconductor fell 4.6% and 5.6%, respectively. Nicholas A. Haskin, an analyst at Barclays, mentioned, “Expectations were heightened before the report, leading to a market reaction that was perhaps overly negative.”

MongoDB also experienced significant losses, with shares sinking 26.9% after the database software company projected adjusted earnings for fiscal 2026 that disappointed analysts. In stark contrast, Zscaler saw its stock prices rise 2.9% after reporting fiscal second-quarter earnings that exceeded projections, highlighting a bright spot in an otherwise bleak earnings season.

On the retail front, Burlington Stores saw an uptick of approximately 8.7% with strong fourth-quarter results that surpassed analyst expectations. Meanwhile, BJ’s Wholesale Club reported a 12.2% rise in shares, bolstered by its positive earnings guidance.

Market analysts note that fears surrounding the impacts of tariffs are crucial in driving this week’s sell-off, especially as consumer confidence wanes. The Nasdaq is down more than 4% this week, and both the Dow and the S&P 500 have seen declines around 3%. “This is shaping up to be the worst week for all three indexes since September 2024,” Keith Lerner, chief market strategist at Truist, commented.

In light of this turmoil, investors are advised to remain cautious. Certuity chief investment officer Scott Welch suggested a break from the frantic pace of trading, stating, “That’s what the market’s paying attention to right now. In my opinion, everybody should just take their dog for a walk and relax.”