Dow drops more than 200 points, S&P 500 slides for fifth day in big market reversal: Live updates

Stocks were lower Wednesday, giving up their earlier gains, putting the S&P 500 on pace for a fifth straight day of losses.

The broad market index was last trading 0.1% lower. The tech-heavy Nasdaq Composite flickered near the flatline even as Nvidia gained 2.1%. The Dow Jones Industrial Average dropped 190 points, or 0.4%. The 30-stock average was earlier up as much as 245.34 points, or 0.6%.

Stocks moved down from their highs as uncertainty around President Donald Trump’s trade policy heightened worries among investors. During his first cabinet meeting, Trump stated that tariffs against Canada and Mexico will take effect. He also declared he would soon expand his trade war to include 25% tariff on goods from the European Union.

“Policy uncertainty. … has certainly filtered its way into a lot of the soft data,” Liz Ann Sonders, chief investment strategist at Charles Schwab, told CNBC’s “Squawk on the Street” on Wednesday. “That’s why you’re seeing thing like buying intentions for big ticket items, capex intentions and spending plans really pull down.”

This comes as investors await Nvidia’s fourth-quarter earnings report, due after the closing bell.

The release arrives at a pivotal time for Nvidia. The emergence of DeepSeek raised questions about the sustainability of the once-hot artificial intelligence trade. The chip giant and other momentum plays are also showing signs of fizzling, with Nvidia down 2% in 2025.

“Nvidia is the bellwether and market-darling stock that is of vital importance to the broader markets. Its performance provides meaningful guidance for the broader market tone. The importance for the tech sector cannot be understated,” said SWBC chief investment officer Chris Brigati.

Stocks are coming off a weak session. The S&P 500 and the Nasdaq both logged their fourth consecutive losing day. The 30-stock Dow was the outlier, with a roughly 0.4% advance.

A weaker-than-expected consumer confidence reading from the Conference Board weighed on stocks Tuesday. A raft of recent reports, including disappointing retail sales numbers and a weak consumer sentiment reading have spurred traders’ worries around the economy over the past week, leading to pressure on the major averages.

For the week, the S&P 500 is down more than 1%, while the Nasdaq and Dow have shed 2.8% and 0.2%, respectively.