02:03 PM EDT, 03/13/2025 (MT Newswires) -- US equity indexes slumped, with the S&P 500 entering correction territory after President Donald Trump warned significant import duties could befall the European Union's alcohol products and cooling producer prices failed to inspire confidence among investors.

S&P 500 sank 1.6% to 5,507.1 after midday on Thursday, reportedly bringing its decline from a mid-February peak to more than 10%. The Nasdaq Composite, which also began flirting with correction territory last week, plunged 2.2% to 17,263.5. The Dow Jones Industrial Average traded 1.6% lower at 40,678.2.

All sectors fell intraday, with communications services, consumer discretionary, and real estate leading the decliners.

President Trump threatened to impose a 200% tariff on imports of European alcoholic products in response to retaliatory duties announced by the EU on Wednesday. The US administration's 25% global levies on steel and aluminum imports took effect that day, prompting a reaction from the EU and fueling concern a protracted trade war could be starting.

US Treasury yields fell intraday, with the two-year rate down 5.9 basis points to 3.94% and the 10-year yield 5.2 basis points lower at 4.27%.

Gold futures jumped 1.5% to $2,991.22, and their silver counterparts advanced 1.7% to $34.29.

West Texas Intermediate crude oil futures slid 1.7% to $66.55 a barrel.

Meanwhile, the US producer price index remained unchanged in February, compared with an upwardly revised 0.6% increase in January, the Bureau of Labor Statistics said Thursday. The print lagged the 0.3% growth estimate in a survey compiled by Bloomberg. Year-over-year, overall producer prices were up 3.2% last month versus a 3.7% rise in January, trailing the 3.3% rate estimated by the Street.

Food prices rose 1.7% following a 1% gain in the previous month, while energy prices declined 1.2% in February following a 1.8% increase in January.

"The details of the producer price report don't offer as encouraging a signal as the unchanged headline reading may suggest," Oxford Economics Senior US Economist Matthew Martin said in remarks emailed to MT Newswires. "The two most volatile components, energy and trade services, were major drags, whereas food prices continue to rise at a fast pace, and core goods registered its largest monthly increase since January 2023 -- even before the bulk of tariffs take effect."

Further, in economic news, the seasonally adjusted number of initial claims declined by 2,000 to 220,000 in the week ended March 8, according to the Department of Labor. The consensus was for an increase to 225,000 in a survey of analysts compiled by Bloomberg. The previous week's reading was revised up by 1,000 to 222,000.

The four-week moving average totaled 226,000, increasing by 1,500 from the prior week's upwardly revised average.

Intel ( INTC ) appointed semiconductor industry veteran Lip-Bu Tan as its new chief executive, effective March 18. Tan, who previously served as CEO of Cadence Design Systems ( CDNS ) , will succeed interim co-CEOs David Zinsner and Michelle Johnston Holthaus. The chipmaker's shares surged 14% intraday, the top performer on the S&P 500 and the Nasdaq.

Adobe (ADBE) shares slumped 13% intraday, the worst performer on the S&P 500 and the Nasdaq. A "clearer roadmap" is needed to dispel "apathy" surrounding the stock even after the software company's Q1 results topped estimates, a Morgan Stanley note said.