Wall Street Drops 3% Amid Ongoing Trade War Concerns

U.S. stocks experienced a significant downturn on Thursday, with the S&P 500 dropping 3% after a record 9.5% surge the previous day, following President Trump's temporary pause on tariffs. The Dow fell by 981 points (2.4%), while the Nasdaq declined 3.7%, as investors grappled with ongoing trade war uncertainties, particularly concerning China. Despite positive inflation and jobless data, economists cautioned that the figures did not reflect future price pressures stemming from the tariffs. UBS strategist Bhanu Baweja noted that even with potential tariff negotiations, the economic impact could still be substantial, hurting corporate profit growth. Meanwhile, China is seeking support from other nations against U.S. tariffs, and the European Union has paused its retaliation measures for 90 days. Market analysts anticipate continued volatility as the uncertainty surrounding Trump's trade policies persists.