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• The S&P 500 entered into a correction Thursday three weeks after hitting record highs following Trump’s 200% tariff threats to European wine and champagne. While inflation cooled in February, the news wasn’t enough to save the S&P from falling 10%. 

The most popular index fell into a correction Thursday amid concerns regarding President Donald Trump’s latest tariff threats, the most recent inflation data, and a materializing government shutdown. 

The S&P 500 dipped 1.4% Thursday, more than 10% below the all-time high the index reached just three weeks ago, falling into correction territory. Wall Street deems a market correction as an index falling more than 10% from a recent peak. 

Additionally, the tech-centric Nasdaq Composite, slid nearly 2% and is already into correction territory as of last week. The Dow Jones Industrial Average dropped nearly 550 points, a 1.3% slip.

“I think what the markets are telling us is that they are very concerned about the potential for a recession,” Invesco chief global market strategist Kristina Hooper at told the New York Times. “That is certainly not what markets expected going into 2025.”

The most recent inflation data suggests that prices are cooling off after the consumer price index increased a seasonally adjusted 0.2% for February, sticking inflation at 2.8%, according to the Department of Labor. 

Cooling prices aren’t a cause for celebration, as Trump’s most recent tariff threats bring inflationary worries to Wall Street.

Early Thursday, Trump warned of 200% tariffs on European wine, champagne, and other spirits in a tit-for-tat retaliation to the European Union’s announcement that the bloc would levy duties of 50% on U.S. whiskey and bourbon. The EU tariffs were in retribution for Trump’s worldwide tariff of 25% steel and aluminum.

“In only a few weeks, the broader market has gone from record highs to correction territory,” chief technical strategist at LPL Financial Adam Turnquist said in a note obtained by CNN. “Tariffs uncertainty has captured most of the blame for the selling pressure and is exacerbating economic growth concerns.” 

The mounting fear of a government shutdown is adding to investor skepticism. Senate Democrats are looking to block a Republican spending bill to stave off a shutdown and have asked the GOP to accept a blue plan to supply funding until April 11. 

While Wall Street hopes for market stability, it looks like tariff troubles will remain as Trump told reporters that he wouldn’t consider Canada for tariff amnesty.

“I’m sorry, we have to do this,” he said.

This story was originally featured on Fortune.com