Major US indices spent the entire day in the red, disappointing traders who had been hoping to extend Wednesday’s rally following Trump’s pivot on tariffs.
The broad-based S&P 500 finished down 3.5 percent at 5,268. The index had soared 9.5 percent on Wednesday.
The Dow Jones Industrial Average dropped 2.5 percent to 39,593, while the tech-rich Nasdaq Composite Index slumped 4.3 percent to 16,387.
Wednesday’s historic rally followed Trump’s decision to pause for 90 days many of his most onerous tariffs on trading partners, while doubling down on levies on China.
US stocks wiped out trillions of dollars in value in the sessions after President Trump’s “Liberation Day” tariff announcement before the president’s reversal on Wednesday.
But by Thursday, investors realized that Trump’s tariff pause “is not enough to get people back in this market,” said Peter Tuchman, senior floor trader at TradeMas Securities.
Data showed that US consumer inflation contracted 0.1 percent from a month earlier in a reading that was lower than analyst expectations.
But traders have been unnerved by the massive reversals in Trump’s policies, resulting in uncertainty that economists warn can paralyse consumers and businesses.
Energy was the biggest loser among the 11 S&P 500 sectors, where 10 groups finished in the red. Only consumer staples mustered a small gain. (AFP)
