04:31 PM EDT, 04/03/2025 (MT Newswires) -- US benchmark equity indexes closed sharply lower on Thursday as investors reacted to the tariffs announcement by President Donald Trump.

The Nasdaq Composite declined 6% to 16,550.6, while the S&P 500 fell 4.8% to 5,396.5. The Dow Jones Industrial Average was down 4% to 40,545.9. All sectors except consumer staples were in the red. Energy and technology saw the steepest declines.

US Treasury yields were lower, with the 10-year yield losing about 6.5 basis points to 4.1%, and the two-year rate falling 14.2 basis points to 3.7%.

May West Texas Intermediate crude oil declined 7% to $66.69 a barrel on Thursday.

Trump announced duties on imports on most nations, including China and Japan late Wednesday. A 10% base tariff rate takes effect for all countries on Saturday, according to the announcement. Additional duties will vary by country.

In economic news, the US goods and services deficit was $122.7 billion in February, according to the US Census Bureau and the Bureau of Economic Analysis. The deficit declined $8 billion from $130.7 billion a month earlier.

Weekly applications for unemployment insurance in the US dropped, while continuing claims rose more than projected to hit the highest in more than three years, government data showed.

In company news, Apple ( AAPL ) , Dell Technologies ( DELL ) , and HP (HPQ) are among the worst positioned in IT hardware following "calamitous" tariffs announced by the Trump administration, Morgan Stanley said Thursday in a note. The tech giants "all rely on extensive international manufacturing, with the large majority of finished goods sold into the US assembled" in Southeast Asia, Morgan Stanley said. Dell was the worst performer on the S&P 500, down 19%, while Apple ( AAPL ) and HP were down 9.3% and 14%, respectively.

Aldeyra Therapeutics ( ALDX ) shares declined 73%. The company plans to resubmit its new drug application for reproxalap after the US Food and Drug Administration said in a complete response letter that the NDA "failed to demonstrate efficacy in adequate and well-controlled studies in treating ocular symptoms associated with dry eyes."

Lamb Weston ( LW ) shares jumped 10%, the top gainer on the S&P 500. The frozen potato product supplier posted better-than-expected fiscal third-quarter results as volume gains helped offset lower prices, while the company reiterated its full-year outlook.

Kroger ( KR ) rose 5.2%. Guggenheim increased its price target on the company's stock to $73 from $71. Morgan Stanley analysts said selected retailers such as Walmart ( WMT ) and Costco (COST), along with grocery chains Kroger ( KR ) and Albertson's (ACI), may be better positioned to weather US tariffs due to a relatively low exposure to imported merchandise, with "discounters (and) dollar stores the most vulnerable."

Gold dropped 1.3% to $3,125.3 per troy ounce, while silver was down 8.2% to $31.80 per troy ounce.