Stock indexes fell sharply on Thursday, with the Nasdaq confirming a correction since peaking last December, as announcements from U.S. President Donald Trump on tariffs fueled investor uncertainty. The global bond market selloff continued, a day after the 10-year German Bund yield saw its biggest rise since the 1990s. Trump exempted goods from Canada and Mexico under a North American trade pact for a month from the 25% tariffs imposed earlier this week. The Dow Jones Industrial Average fell 427.51 points, or 0.99%, to 42,579.08, while the S&P 500 fell 104.11 points, or 1.78%, to 5,738.52, and the Nasdaq Composite fell 483.48 points, or 2.61%, to 18,069.26. The U.S. dollar weakened, and the safe-haven yen and Swiss franc advanced as investors turned risk-averse. The European Central Bank cut interest rates as expected, and the euro hit a four-month high. Weekly initial U.S. jobless claims fell by 21,000 to a seasonally adjusted 221,000, but planned job cuts vaulted 245% to 172,017 last month, the highest level since July 2020. European leaders stated they would stand by Ukraine and spend more on defense amid Trump's reversal of U.S. policies, which has raised concerns about the region's reliance on U.S. protection. Oil prices remained largely unchanged, with Brent futures rising 16 cents to settle at $69.46 a barrel.