NEW YORK — Wall Street’s sell-off hit a new low Thursday after President Donald Trump’s escalating trade war dragged the S&P 500 more than 10% below its record, which was set just last month.

Wall Street ended sharply lower on Thursday and the S&P 500 confirmed it is in a correction after cool inflation data was overshadowed by fears that the escalating, hydra-headed tariff war being waged by the United States against its biggest trading partner could reignite inflation and tip the economy into recession.

A 10% drop is a big enough deal that professional investors have a name for it — a “correction” — and the S&P 500’s slide on Thursday sent the index to its first since 2023.