04:39 PM EST, 03/06/2025 (MT Newswires) -- US benchmark equity indexes retreated Thursday as trade tensions continued to grip markets ahead of official jobs data for February.

The Nasdaq Composite slid 2.6% to 18,069.3, while the S&P 500 declined 1.8% to 5,738.5. The Dow Jones Industrial Average dropped 1% to 42,579.1. Barring energy, all sectors closed lower, led by consumer discretionary.

The White House on Thursday issued temporary tariff exemptions for Canadian and Mexican goods that comply with a North American trade pact, Reuters reported.

The US administration recently doubled its levy on Chinese imports. Canada and China have announced retaliatory measures.

The US trade deficit surged 34% in January on the back of a jump in imports, government data showed Thursday.

In other economic news, US job cuts in February hit their highest monthly total since July 2020, driven by government workforce reductions, Challenger Gray & Christmas said in a report.

"With the impact of the Department of Government Efficiency actions, as well as canceled government contracts, fear of trade wars and bankruptcies, job cuts soared in February," said Andrew Challenger, senior vice president of Challenger Gray & Christmas.

The Bureau of Labor Statistics is expected to report Friday that the US economy added 160,000 nonfarm jobs last month, which would mark a rise from a 143,000 gain posted for January, according to a Bloomberg-compiled survey.

Weekly applications for unemployment insurance in the US dropped more than expected, while continuing claims advanced, government data showed Thursday. The data from recent weeks don't indicate any signs of "an inflection higher towards broader labor market weakness" regardless of seasonal volatility, Jefferies said.

US Treasury yields were mixed Thursday, with the 10-year rate rising 1.5 basis points to 4.282% and the two-year rate dropping 1.7 basis points to 3.969%.

In company news, MongoDB's ( MDB ) shares plunged 27%. The database software maker late Wednesday issued a downbeat full-year financial outlook.

Steaming giant Netflix ( NFLX ) sank 8.5% Thursday, among the steepest declines on the S&P 500.

Burlington Stores' ( BURL ) shares surged 8.7% after the off-price retailer posted higher-than-expected fiscal fourth-quarter results and indicated that the ongoing economic uncertainty could benefit discount stores.

Kroger's ( KR ) fiscal fourth-quarter earnings came in ahead of market estimates, but revenue missed forecasts. The supermarket chain issued a full-year bottom-line outlook below Wall Street's expectations. The company's shares rose 2%.

West Texas Intermediate crude oil slipped 0.1% to $66.26 a barrel.

Gold fell 0.3% to $2,918.80 per troy ounce, while silver added 0.2% to $33.20 per ounce.