Markets Pull Back Late on New Tariff Talk

Market Overview - The stock market experienced a decline, with the Dow dropping 648 points (-1.48%), the S&P 500 falling 104 points (-1.76%), and the Nasdaq decreasing by 497 points (-2.64%) [2] - The small-cap Russell 2000 performed the worst, down 60 points (-2.81%) [2] - Year-to-date performance shows the Dow at -2.7%, S&P 500 at -2.4%, Nasdaq at -5.3%, and Russell 2000 at -6.9% [2] Tariff Impact - A 25% tariff was announced on imports from Canada and Mexico, leading to a market reaction [1] - Major companies like Amazon, Apple, Microsoft, and NVIDIA saw significant stock declines, with Amazon down 3.4%, Apple down 1.5%, Microsoft down 2.1%, and NVIDIA down 8.5% [3] - Market participants had hoped for a last-minute reprieve or new negotiations, but the tariffs are set to take effect soon [3] Economic Indicators - The Atlanta Fed revised its Q1 GDP estimate down to -2.8%, a significant drop from the previous estimate of -1.5% [4] - This marks a potential return to negative quarterly GDP growth, the first since Q1 2022 [4] Manufacturing and Construction Data - February manufacturing data showed mixed results, with the final S&P Manufacturing PMI at 52.7, indicating growth, while ISM Manufacturing was slightly below expectations at 50.3 [5] - Construction spending for January decreased by 0.2% month-over-month, contrasting with the previous month's increase of 0.5% [6] - Industrial materials have been stockpiled in anticipation of tariffs, but capital outlays on construction personnel remain subdued [6] Company Performance - Okta (OKTA) reported strong Q4 results, with earnings of 78 cents per share, exceeding expectations, and revenues of $682 million, surpassing the consensus of $668.8 million [7] - Following the report, Okta's shares rose by 13% [7]