FX.co ★ Wall Street Tumbles as US-China Trade Tensions Reignite

US stocks took a significant downturn on Thursday, erasing gains from the previous day's notable rally, as investor confidence was rattled by renewed concerns over escalating trade tensions between the United States and China. President Trump's declaration of a 90-day suspension of tariffs for certain countries momentarily sparked optimism. However, when it was confirmed that the overall tariff rate on Chinese imports had surged to 145%, market apprehensions were reignited. The S&P 500 and Nasdaq experienced losses of 3.5% and 4.3% respectively, while the Dow Jones Industrial Average dropped by 1,015 points. Major technology firms, including Apple (-4.2%), Tesla (-7.3%), Nvidia (-5.9%), and Meta (-6.7%), were prominent among the decliners, as investors expressed caution amid the prolonged uncertainty of trade relations. Although President Trump hinted at the possibility of extending the tariff pause, markets remained unsettled due to the escalating and unresolved trade war with China. Additionally, growth concerns resurfaced among investors following the previous day's rally sparked by the tariff pause, despite today's Consumer Price Index data indicating signs of disinflation.