Stocks fell again today. The S&P 500, which tracks the stock performance of 500 of the biggest companies that are listed on U.S. stock exchanges and is the world’s most widely followed stock market benchmark, dropped 77.78 points, or 1.39%, ending the day more than 10% off its record high of less than a month ago and entering into “correction” territory. A market correction is a period of rapid change that drops the value of stocks by at least 10%. Other major indexes have also fallen into correction as President Donald Trump’s tariffs and tariff threats, along with dramatic cuts to federal funding and federal employment, are hobbling the national economy. The Dow Jones Industrial Average fell 537 points, or 1.3%, and the Nasdaq Composite fell 2%. In the wake of the dropping markets, Trump announced on his social media platform today that if the European Union did not drop its 50% tariff on whiskey, imposed as retaliation for Trump’s tariffs on aluminum and steel, he would impose a 200% tariff on all “WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES.” He added: “This will be great for the Wine and Champagne businesses in the U.S.” In fact, journalist Dave Infante, who covers drinking in America at Fingers, noted that while it seems counterintuitive, such a tariff would “crush the US wine industry. Booze gets to market on distributors' trucks,” he posted. “These fleets need volume to run efficiently. Subtract EU wine from the equation & it no longer pencils out. Any gains from less competition would likely be paid back out in margin loss.” |
