US stocks ended sharply lower Thursday as concerns persisted over President Donald Trump’s tariff policy.
In the markets, which rallied Wednesday after Trump’s decision to postpone tariffs, selling pressure increased as tariff concerns came to the fore again.
In a post on his Truth Social platform, Trump said he approved the suspension of additional tariffs on US trading partners for 90 days but maintained a 10% across-the-board duty.
He also announced an increase in tariffs on China to 125% effective immediately.
The White House later clarified that the tariff hike brings total China duties to 145% when tariffs imposed due to the fentanyl crisis are included.
Following the announcement, the European Union said it would suspend measures against US tariffs on steel and aluminum imports for 90 days, while China said it would not back down while facing the US-provoked and escalated tariff war.
Analysts said the increasing trade tensions between Washington and Beijing overshadowed optimism about negotiations on trade agreements and positive economic data in the US, and concern that the escalation of the trade war between the world’s two largest economies would cause permanent damage to economic growth triggered selling.
They also stressed that uncertainties continue despite the 90-day suspension of additional tariffs, saying market volatility is expected to continue as investors act cautiously and evaluate the economic consequences.
On the macroeconomic side, data released in the US showed that inflation in the country continued to slow down.
Accordingly, inflation decreased by 0.1% on a monthly basis in March, while it was realized at 2.4% on an annual basis, which was below expectations.
Thus, for the first time since May 2020, the index decreased on a monthly basis.
The number of people applying for unemployment benefits for the first time in the US increased last week by 4,000 to 223,000, in line with expectations, marking a slight increase from the previous week’s figure of 219,000.
The Dow Jones Industrial Average fell 2.5%, or 1,014.79 points, to end the day at 39,593.66.
The S&P 500 fell by 3.46%, or 188.85 points, to 5,268.05, while the Nasdaq Composite slid 4.31%, or 737.66 points, to 16,387.31.
The VIX Index, also known as the “fear index,” jumped by 21.12% to 40.72.