S&P 500 Falls 2.3% as Trade War Escalates

U.S. stocks experienced a decline as Wall Street contemplates ongoing trade tensions, despite a significant surge the previous day following President Trump's tariff pause. The S&P 500 fell 2.3% after gaining 9.5% in a historic rebound, while both the Dow and Nasdaq also suffered losses. Market volatility is expected to continue as the U.S. and China remain embroiled in a trade war, with corporate earnings reports set to begin soon. Investor sentiment has been shaky, particularly after China's retaliatory tariff measures and the reaffirmation of U.S. tariffs on Chinese goods. Analysts caution that current market conditions signal potential further losses unless key support levels are reclaimed. Upcoming inflation data and developments in trade relations are critical for market direction.