Wall Street continued a retreat into ‘extreme fear’ territory after the Trump administration balked on its signature trade policy for a second time. 

The S&P Global, Dow Jones, and Nasdaq are all trading in the red by mid-day March 6. 

By noon in New York, the Nasdaq lost over 2 percent. 

The recent market decline caused CNN’s Fear and Greed Index to drop significantly, indicating that investors were feeling extreme fear. This index evaluates seven different factors in the stock market to gauge the prevailing sentiment among investors.

The March 6 sell-off continues volatile week for investors, as all three indexes saw major swings. 

First, markets tumbled into Tuesday after the President announced tariffs on Mexico, Canada, and China and the countries retaliated. 

Wall Street gained some momentum back on Wednesday after President Trump removed tariffs for automakers until April 2. 

But then Trump announced it was pulling back most tariffs on Mexican imports in a social media post on March 6. 

Stock traders are trading in ‘extreme fear’ territory

President Trump announced via his social media platform, Truth Social, that Mexico would be exempt from tariffs on goods covered under the USMCA Agreement after discussions with Mexican President Claudia Sheinbaum.

The USMCA is a free-trade agreement struck between The U.S., Mexico, and Canada during the first Trump administration. 

Trump said the Mexican tariffs will also be delayed until April 2.  

The rapid changes have thrown investors off-kilter. 

‘You’re just having confusion,’ Keith Lerner, the chief market strategist at Truist, told CNBC. 

‘That confusion is permeating into the day-to-day swings of the market.’ 

Tech stocks have been hit the hardest. 

Nvidia, a dominant microchip producer that is seen as a bellwether of the AI industry, lost 5 percent of its stock value by mid-day. 

Wall Street saw massive drops as tech stocks stumbled amid uncertainty

Experts pointed to uncertainty around President Trump’s tariff policies as a contributor to the precipitous fall

The losses continue a trend for Nvidia, which has lost over 13 percent of its value this month and over 19 percent since the beginning of 2025. 

Apple, Microsoft, Amazon, Tesla, and Intel are also trading in the red. 

Tech giants such as Apple and Nvidia rely on production facilities located outside the United States. This global manufacturing setup makes these companies vulnerable to fluctuations in pricing should tariffs be imposed by the Trump administration.

This isn’t the first time Trump made an about-face on his tariff decisions after markets reacted poorly. 

In February, the President postponed tariffs to early March after global markets entered deep red. 

Then, days later, the President launched global tariffs on all aluminum and steel entering the country. The taxes on metal didn’t drive any major stock swings. 

During his recent address to Congress, Trump warned that the economy may incur some dark days as he imposed tariffs. 

‘There may be a little bit of an adjustment period — you have to bear with me,’ he said during his 90-minute speech. 

‘Tariffs are about Making America Great Again. There may be a little disturbance.’

The import taxes are not the only factor driving Wall Street’s volatility. 

Stocks are also contending with signs that American consumers are pulling back spending after facing years of inflated costs. 

Several major retailers — including Walmart, Target, and Best Buy — have all forecasted less-than-rosy growth outlooks in 2025.

Walmart’s prediction of slumping sales had the largest impact of the bunch. The Arkansas-based retailer said it expects growth of 3 to 4 percent in 2025. 

Last year, the company grew by more than 9 percent.