US stocks took a heavy blow on Thursday as investors reacted with alarm to the latest developments in President Donald Trump’s tariff standoff, which continues to roil global markets. Despite some recent gains, all three major U.S. stock market indices posted steep losses as escalating trade tensions overshadowed a wave of positive economic indicators and recent optimism over the U.S.-Europe trade dialogue.
The Dow Jones Industrial Average sank 1,014.79 points, or 2.50%, to close at 39,593.66. The broader S&P 500 fell even harder, slumping 188.85 points, or 3.46%, to 5,268.05. The tech-heavy Nasdaq Composite bore the brunt of the selling, diving 737.66 points, or 4.31%, to end at 16,387.31.
The widespread downturn in the US Stock market comes just a day after markets posted historic gains. On Wednesday, stocks surged after Trump briefly announced a 90-day tariff pause, triggering the largest one-day percentage gain in the S&P 500 since October 2008, with the index jumping 9.5%. The Nasdaq skyrocketed 12.2%, its second-largest single-day advance ever.
However, the relief proved fleeting. Markets recoiled Thursday after the White House confirmed that the blanket 10% duty on nearly all U.S. imports would remain in place, and tariffs on Chinese goods would rise, bringing total levies to 145%. The intensification of trade friction between the world’s two largest economies left investors scrambling to reassess risks.
US Stock Market Sector Performance.
Among the S&P 500’s 11 sectors, only consumer staples managed to close in the green. Energy and technology stocks were the most brutal hit, mirroring concerns over global demand and supply-chain disruptions. The so-called “Magnificent Seven” group of AI-related tech giants plunged between 2.3% and 7.3%. Tesla dropped 7.27%, Apple shed 4.24%, and Nvidia plummeted 5.91%, while AMD saw significant losses.
CarMax shares were hammered, tumbling 17.0% after the used-car retailer fell short of fourth-quarter profit expectations, adding to concerns over consumer spending trends in high-ticket discretionary goods.
US Stock market breadth was decisively negative. On the NYSE, declining stocks outnumbered advancers by a ratio of 4.81-to-1, with 224 new lows recorded compared to just 39 new highs. The Nasdaq fared similarly poorly, with 3,588 stocks falling and only 867 rising, for a 4.14-to-1 decline ratio.
Meanwhile, the U.S. dollar lost ground across the board as traders sought safety in haven currencies. The dollar fell 3.89% against the Swiss franc, hitting a 10-year low, and weakened 2.07% against the Japanese yen to 144.66. The euro gained 2.23% on the day.
Adding to the complexity of US stock markets, U.S. inflation data revealed a surprise decline in consumer prices. The Consumer Price Index (CPI) dropped 0.1% in March, the first decline since May 2020, driven by lower gas and used vehicle prices. Year-over-year, inflation slowed to 2.4% from 2.8% in February.
Bond yields reflected growing caution in the US Stock markets. The 10-year Treasury yield dipped 1 basis point to 4.386%, while the more rate-sensitive 2-year yield fell 11 basis points to 3.843%, suggesting increased expectations for potential monetary policy adjustments if economic headwinds continue.
As Wall Street grapples with a volatile mix of trade tensions, shifting inflation dynamics, and geopolitical uncertainties, investors remain on edge, watching closely for the next move from Washington—and Beijing.
