U.S. stocks on Thursday are giving back a chunk of their historic gains from the day before as Wall Street weighs a global trade war that has cooled in temperature but is still threatening the economy, the Associated Press reports.
The S&P 500 was down 3% Thursday morning, a day after surging 9.5% following President Donald Trump’s decision to pause many of his tariffs worldwide. The Dow Jones Industrial Average was down 2.4% this morning, and the Nasdaq composite was 3.7% lower.
Even a better-than-expected report on inflation Thursday morning wasn’t enough to get U.S. stocks to add to their surges from the day before, including the S&P 500’s third-best since 1940. Economists said the data wasn’t very useful because it offered a view only of the past, and inflation may rise in coming months because of tariffs.
Many on Wall Street are preparing for more wild swings in the market, after the S&P 500 at one point nearly dropped into a “bear market” by almost closing 20% below its record. The S&P 500 still remains below where it was when Trump announced his sweeping set of tariffs last week on “Liberation Day.”
One encouraging signal, though, is coming from the bond market, where stress seems to be easing. The 10-year Treasury yield has calmed over the last day, following Trump’s U-turn on tariffs, and was sitting at 4.30%. That’s after it had shot up to nearly 4.50% Wednesday morning from just 4.01% at the end of last week.
