Stocks slipped Thursday as investors digested the latest tariff threat from President Donald Trump, while they pored through new U.S. inflation figures.

Intel Jumps 14%; Nvidia up 0.8%; Tesla down 1%

Beleaguered tech stocks caught a bid Wednesday as investors snapped up shares, lifting the S&P 500 higher by 0.5%. The Nasdaq Composite also popped 1.2% thanks to gains from Nvidia and Palantir Technologies. The 30-stock Dow was an outlier, however, notching a third straight losing day and falling 0.2%.

Futures extended their selling after a fresh threat of tariffs from President Donald Trump.

On Thursday morning, Trump took to his Truth Social platform to threaten 200% tariffs on all alcoholic products coming from countries in the European Union in retaliation for the bloc’s 50% tariff on whisky. “This will be great for the Wine and Champagne businesses in the U.S.,” he wrote.

However, stock futures came off of their morning lows after February’s producer price index — which measures the cost of producing consumer goods and is a good indicator of inflationary pressures — was flat that month, compared with an expected increase. This, alongside a softer-than-expected February consumer price index reading, may have helped ease traders’ concerns about the direction of the economy and the impact tariffs could have on inflation.

Though market strategists have been watching for a technical bounce after the recent sell off, some say the latest inflation print likely isn’t enough to lead to a sizable rebound. Concerns over Trump’s trade policies remain a key hangover on investor sentiment, and they throw into question how the Federal Reserve may proceed on interest rates.

“We still believe the next Fed rate move is lower, but it is hard to have high confidence with the impact of tariffs still uncertain,” said Scott Helfstein, Global X’s head of investment strategy. “The key question is whether tariffs will have a greater impact on growth or prices. In recent weeks, the rates market has signaled that weaker growth is the bigger concern with three cuts now being priced for this year.”

Week to date, all three major averages are on pace for steep declines. The S&P 500 and Nasdaq are on track for losses of about 3%. The Dow is off 3.4% in the period, heading for its worst week since March 2023. The broad market index briefly dipped into correction territory on Tuesday, down 10% from a record set in February.