The major stock indices are falling hard on Thursday as investors remain cautious about President Donald Trump’s trade policies. This comes after the President announced a 90-day pause for tariffs, which were set to go into effect yesterday after last week’s Liberation Day announcement.
This has caused extreme volatility in the market since Liberation Day. Stocks initially plummeted in the days to follow but started to bounce back earlier this week when reports of the pause first spread. However, the market selloff started again today after the President announced his tariff hold. One country that wasn’t included in this is China, which has had the tariffs on its U.S. imports increased to 145%.
This news has the Nasdaq 100 (NDX) index down 4.78% on Thursday afternoon. This makes it the biggest loser today, with the S&P 500 (SPX) down 3.91% and the Dow Jones Industrial Average (DJIA) down 2.98% as of this writing. It also extends its 7.89% loss over the last three months.
Stock Market Index ETFs Also Drop Today
Exchange-traded funds (ETFs) that track the major stock market indices are also down today. That includes a 4.77% drop for the Invesco QQQ Trust (QQQ), a 4.74% decrease for the SPDR S&P 500 ETF Trust (SPY), and a 3.04% fall for the SPDR Dow Jones Industrial Average ETF Trust (DIA).
Are Stock Market Index ETFs Worth Buying on the Dip?
Looking at the latest analysts’ ratings data, the Invesco QQQ Trust, SPDR S&P 500 ETF Trust, and SPDR Dow Jones Industrial Average ETF Trust each have consensus Moderate Buy ratings based on the shares they hold. Of them, QQQ has the highest upside potential at 19.51%, followed by SPY at 18.10% and DIA at 14.33%. However, investors will want to be careful right now as the markets remain volatile during the trade war.
