Stocks were lower after a volatile session on Thursday as investors digested President Donald Trump's latest tariff announcement for major trading partners and artificial intelligence darling Nvidia's fourth-quarter earnings. The Dow Jones Industrial Average fell nearly 200 points, while the S&P 500 Index and Nasdaq Composite lost 1.6% and 2.8%, respectively.

Here's how the market settled on Thursday:

S&P 500 Index (SPY  ): -1.59% or -94.49 points to 5,861.57

Dow Jones Industrial Average (DIA  ): -0.45% or -193.62 points to 43,239.50

Nasdaq Composite Index (QQQ  ): -2.78% or -530.84 points to 18,544.42

Trump announced Thursday that his proposed 25% tariffs on Mexico and Canada will go into effect on March 4, and that China will face an additional 10% duty, bringing the total tariff on Chinese imports to 20%. The broad levies were initially paused on Feb. 3 for one month.

In a Truth Social post, Trump claimed that illicit drugs "are still pouring into our Country from Mexico and Canada at very high and unacceptable levels," despite pledges from Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum to increase their border control.

"We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled," Trump wrote, adding that "The April Second Reciprocal Tariff date will remain in full force and effect."

Nvidia (NVDA  ) reported better-than-expected fourth-quarter earnings after the closing bell on Wednesday and issued strong forward guidance. However, investors were discouraged by its gross margin declining three points on an annual basis during the quarter, as newer data products were more expensive than expected.

Chief Financial Officer Colette Kress said the semiconductor maker expects a "significant ramp" of sales of its next-generation AI chip Blackwell in its first-quarter, adding that "Blackwell sales were led by cloud service providers [in its fourth-quarter] which represented approximately 50% of our Data Center revenue."

Nvidia expects first-quarter revenue of about $43 billion, plus or minus 2%.

In Economic News:

Pending U.S. Home Sales reached their lowest level ever in January, the National Association of Realtors (NAR) reported Thursday, as higher mortgage rates continue to impact the housing market. The average 30-year mortgage rate climbed over 7% in January, according to Fannie Mae.

Sales of previously owned homes fell 4.6% from December to a historic low of 70.6. On an annual basis, pending home sales declined 5.2%.

"It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months," said Lawrence Yun, chief economist at NAR, in a statement. "However, it's evident that elevated home prices and higher mortgage rates strained affordability."

FedWatch:

Cleveland Federal Reserve President Beth Hammack said Thursday she doesn't expect the Federal Open Market Committee to lower interest rates further until inflationary pressures ease, echoing remarks from peers. Hammack does not vote this year on interest rates.

"As long as the labor market remains healthy, I am looking for broad-based evidence that inflation is sustainably returning to 2 percent before adjusting policy further," Hammack told those attending a banking conference. "While there are good reasons to expect that inflation will gradually come down to 2 percent over the medium term, this is far from a certainty, and upside risks to the inflation outlook abound."