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US stocks fell on Thursday, with the S&P 500 ( ^GSPC ) officially entering into correction territory, as economic concerns grew and investors digested the latest inflation data , President Trump's trade offensive , and a looming US government shutdown.

The S&P 500 ( ^GSPC ) dropped 1.4% to officially enter a correction, as it is now more than 10% off its February record high. The tech-heavy Nasdaq Composite ( ^IXIC ), which itself entered into a correction last week , shed nearly 2%. The Dow Jones Industrial Average ( ^DJI ) slid 1.3%, or nearly 550 points.

Markets remain on edge after days of being whipsawed by fresh headlines . But uncertainty around Trump's tariff policy continues to grip Wall Street, and his trade war has only intensified this week .

The president has vowed to respond to tariffs planned by the EU and Canada in response to US duties on steel and aluminum imports — most notably leading off Thursday by threatening a 200% tariff on imports of EU wines and spirits. Later in the White House, he vowed that he won't "bend" in his increasingly broad trade fight.

Read more: The latest on Trump's tariff plans

Meanwhile, the risk of a US government shutdown adds another layer of worry for investors already assessing the impact of DOGE job cuts on the economy. Senate Democrats plan to block a Republican spending bill to avert the weekend shutdown, Minority Leader Chuck Schumer said.

Wholesale inflation data released on Thursday morning showed prices did not change in February, compared to an expected month-over-month increase of 0.3%. On an annualized basis, the Producer Price Index rose 3.2%, versus a consensus estimate of 3.3%.