Daijiworld Media Network- New York
New York, Apr 11: A day after markets cheered US President Donald Trump’s surprise decision to ease tariff burdens on several nations, Wall Street saw a sharp reversal on Thursday with major indexes falling significantly, led by a 3.46% plunge in the Nasdaq Composite.
The Dow Jones Industrial Average dropped 915.22 points, or 2.30%, to 39,693.23, while the S&P 500 slid 153.61 points, or 2.81%, to close at 5,303.29. The tech-heavy Nasdaq Composite suffered the steepest decline, shedding 592.43 points to finish at 16,532.54.
This came even as data showed US consumer prices unexpectedly dipped in March, signaling a cooling of inflation. Yet, uncertainty surrounding US trade policy and the broader economic outlook dampened investor sentiment.
“All things being equal, if tariffs are paused and inflation is going lower, it’s green light go if you’re an investor,” noted Jake Dollarhide, CEO of Longbow Asset Management based in Tulsa, Oklahoma. However, the market remained volatile amid mixed messages on trade and inflation indicators.
US Treasury yields edged lower as bond prices rose, recovering from the week’s earlier selloff, indicating a shift back to safer assets.
Meanwhile, global equity performance painted a mixed picture. The MSCI All-Country World Index fell slightly by 0.35% to 782.57. In contrast, the pan-European STOXX 600 index saw a modest gain of 4.32%, buoyed by optimism over easing tariffs.
Markets worldwide had rallied on Wednesday after President Trump reversed course on some of his controversial tariff policies, igniting a 9.5% surge in the S&P 500. Stocks in Asia followed suit — China’s CSI300 rose 1.3% and Hong Kong’s Hang Seng advanced 2.1%, despite Trump’s vow to raise tariffs on Chinese goods to 125%.
However, uncertainty persists as the 10% general tariff on most US imports remains intact, and mixed messaging has left investors unsure of the long-term trajectory of trade relations.
Adding to the market's cautious mood, investors are now looking toward Friday’s kickoff of the quarterly earnings season, with results expected from major US banks including JPMorgan Chase. The financial reports are anticipated to set the tone for Wall Street in the coming weeks.