Wall Street continued a retreat into ‘extreme fear’ territory after the Trump administration balked on its signature trade policy.
The S&P Global, Dow Jones, and Nasdaq are all trading in the red by mid-day March 6.
By noon in New York, the Nasdaq lost over 2 percent.
The sell-off sent CNN’s Fear of Greed Index, an indicator that measures seven different factors in the stock market to determine what sentiment is driving the investors, into ‘extreme fear’ territory.
The March 6 sell-off continues volatile week for investors, as all three indexes saw major swings.
First, markets tumbled into Tuesday after the President announced tariffs on Mexico, Canada, and China and the countries retaliated.
Wall Street gained some momentum back on Wednesday after President Trump removed tariffs for automakers until April 2.
But then Trump announced it was pulling back most tariffs on Mexican imports in a social media post on March 6.
Stock traders are trading in ‘extreme fear’ territory
‘After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,’ President Trump said on his social media app, Truth Social.
The USMCA is a free-trade agreement struck between The U.S., Mexico, and Canada during the first Trump administration.
Trump said the Mexican tariffs will also be delayed until April 2.
The rapid changes have thrown investors off-kilter.
‘You’re just having confusion,’ Keith Lerner, the chief market strategist at Truist, told CNBC.
‘That confusion is permeating into the day-to-day swings of the market.’
Tech stocks have been hit the hardest.
Nvidia, a dominant microchip producer that is seen as a bellwether of the AI industry, lost 5 percent of its stock value by mid-day.
Wall Street saw massive drops as tech stocks stumbled amid uncertainty
Experts pointed to uncertainty around President Trump’s tariff policies as a contributor to the precipitous fall
The losses continue a trend for Nvidia, which has lost over 13 percent of its value this month and over 19 percent since the beginning of 2025.
Apple, Microsoft, Amazon, Tesla, and Intel are also trading in the red.
Multiple tech companies, including Apple and Nvidia, assemble and manufacture products outside of the U.S., leaving them susceptible to pricing volatility if Trump keeps tariffs.
This isn’t the first time Trump made an about-face on his tariff decisions after markets reacted poorly.
In February, the President postponed tariffs to early March after global markets entered deep red.
Then, days later, the President launched global tariffs on all aluminum and steel entering the country.
Stocks are also contending with signs that American consumers are pulling back spending after facing years of inflated costs.
Several major retailers — including Walmart, Target, and Best Buy — have all forecasted less-than-rosy growth outlooks in 2025.
Walmart’s prediction of slumping sales had the largest impact of the bunch. The Arkansas-based retailer said it expects growth of 3 to 4 percent in 2025.
Last year, the company grew by more than 9 percent.
