Business & Economy
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Business & Economy
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S&P 500 sinks into correction amid stock selloff
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The major stock index closed Thursday 10 percent below a record high reached in February, hitting an infamous threshold on Wall Street.
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The S&P closed with a loss of 1.4 percent, falling to just more than 5,521.52.
That level is roughly 10 percent below the key index’s most recent record high of 6,144.15, which was set Feb. 19.
Thursday marked yet another day of steep losses for the stock market amid mounting concerns over the state of the economy and the potential impact of President Trump’s trade agenda.
After a brief reprieve from a better-than-expected inflation report Wednesday, markets continued to sell off after Trump and the European Union exchanged new tariffs and threats.
- Trump earlier Thursday threatened to put a 200 percent tariff on wine, Champagne and other alcohol from if the EU did not revoke a new import tax on U.S. whisky.
- Trump’s 25 percent tariffs on steel and aluminum took effect Wednesday, leading the EU to retaliate with a two-step plan.
- The EU is set to allow expired tariffs on U.S. goods, which the bloc imposed during its last trade battle with Trump, to return April 1. The EU also plans to impose new tariffs on $28 billion in U.S. goods by mid-April.
Trump’s escalating trade wars with Europe, Canada and Mexico have shaken the confidence of business leaders and consumers alike, ramping up the pressure on the president and his party.
Read the full report at TheHill.com.
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Welcome to The Hill’s Business & Economy newsletter, I'm Sylvan Lane — covering the intersection of Wall Street and Pennsylvania Avenue.
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Key business and economic news with implications this week and beyond:
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Senate Democratic Leader Chuck Schumer (N.Y.) announced on the Senate floor Thursday that he plans to vote to advance a House-passed six-month government funding bill, despite the strong opposition of many Democrats who say the bill would create a “slush fund” for President Trump and Elon Musk.
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Congress is poised to pass a President Trump-endorsed funding bill this week that D.C. officials warn would lead to a $1 billion cut to the district’s local budget, a move that has been catching members of both parties off guard.
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Nearly half of Americans said the economy is worsening, according to a Thursday The Economist/YouGov poll.
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Canada has filed a complaint with the World Trade Organization (WTO), asking it to dispute consultations with the U.S. regarding the tariffs on certain aluminum and steel products coming from Ottawa.
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Senate Finance Committee meets with White House on tax cuts
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Welcome to Tax Watch, a new feature focused on the fight over tax reform and the push to extend the 2017 Trump tax cuts this year.
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Senate Finance Committee Chair Mike Crapo (R-Idaho) touted the importance of making the Trump tax cuts permanent Tuesday ahead of a meeting between committee members and the White House.
“Permanence is our highest priority,” he said during an event Wednesday, writing on social media later about the “importance of competitive, permanent tax policy.”
The meeting with the White House comes as House and Senate Republicans still have a good deal of daylight between them on extending the 2017 Tax Cuts and Jobs Act (TCJA). Sticking points include cuts to U.S. food assistance and health care programs and how much money Republicans are willing to add to the deficit.
“The most damaging way to finance TCJA extensions would be with spending cuts for programs like SNAP or Medicaid,” Josh Bivens, chief economist at the Economic Policy Institute, a left-leaning Washington think tank, wrote in a February analysis.
— Tobias Burns
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Upcoming news themes and events we're watching:
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- Funding for the federal government expires at midnight Saturday.
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Business and economic news we've flagged from other outlets:
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- US wholesale inflation substantially slowed in February (CNN)
- Almonds, whiskey, auto parts: EU’s retaliatory tariffs set up these U.S. states and local products as the biggest losers (CNBC)
- These tax benefits could help caregivers in crisis — if they pass Congress (MarketWatch)
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Top stories on The Hill right now:
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Senate Democrats say privately that they will not allow the government to shut down Saturday, despite growing pressure from activists and liberal lawmakers who want them to kill a GOP-crafted six-month stopgap spending bill. Read more
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Excerpted from “FIGHT: Inside the Wildest Battle for the White House” by Jonathan Allen and Amie Parnes, to be published April 1 by William Morrow. Copyright © 2025 by Jonathan Allen and Amie Parnes. Reprinted courtesy of HarperCollins Publishers. Read more
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You're all caught up. See you tomorrow!
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