Stocks Close Lower Amid Tariff Deadline and Jobs Report Anticipation

U.S. equities retreated Thursday as investors braced for President Trump's impending tariff deadline and a critical jobs report. The Nasdaq Composite erased early gains, while the S&P 500 and Dow Jones Industrial Average fell 0.4% and 0.7% respectively. Despite the pullback, both benchmarks posted monthly gains—extending their winning streaks to three and four months.

Market participants digested mixed signals from corporate earnings and economic data. Meta and Microsoft's strong results bolstered confidence in AI investments, overshadowing broader concerns about trade policy. The Federal Reserve's preferred inflation gauge showed accelerating price pressures, adding complexity to the macroeconomic picture.

Trade tensions loom large as new tariffs take effect Friday, with the administration preparing to outline terms for broader trade relationships. The temporary extension of current rates with Mexico suggests ongoing negotiations rather than immediate escalation.