After massive surge on Wednesday, stock markets fall as trade war continues

The Associated Press

· Posted: Apr 10, 2025 12:01 PM EDT | Last Updated: 18 minutes ago

U.S. stocks connected Thursday are giving backmost a chunk of their historical gains from the time earlier arsenic Wall Street weighs a planetary commercialized warfare that has cooled successful somesthesia but is inactive threatening the economy.

The S&P 500 was down 3.2 per cent, a time aft surging 9.5 per cent following U.S. President Donald Trump's determination to intermission galore of his tariffs worldwide. The Dow Jones Industrial Average was down 981 points, oregon 2.7 per cent, arsenic of 11 a.m. ET, and the Nasdaq Composite was 3.8 per cent lower.

On the Canadian market, the S&P/TSX Composite Index was down astir 3.3 per cent arsenic of 12 p.m. ET.

Even a better-than-expected study connected ostentation Thursday greeting wasn't capable to get U.S. stocks to adhd to their surges from the time before, including the S&P 500's third-best since 1940. Economists said the information wasn't precise utile due to the fact that it offered a presumption lone of the past, erstwhile ostentation whitethorn emergence successful coming months due to the fact that of tariffs.

A affirmative study connected joblessness didn't assistance overmuch either, with Wall Street's absorption wholly connected what's to come.

"Trump blinks," UBS chief strategist Bhanu Baweja wrote successful a study astir the president's determination connected tariffs, "but the damage
isn't each undone."

WATCH | Stocks skyrocket aft tariff pause, but experts pass of occupation ahead:

Trump has focused much connected China, raising his tariffs connected its products to good supra 100 per cent. Even if that were to get negotiated down to thing similar 50 per cent, and adjacent if lone 10 per cent tariffs remained connected different countries, Baweja said the deed to the U.S. system could inactive beryllium ample capable to wounded expected maturation for upcoming U.S. firm profits.

Many connected Wall Street are preparing for much chaotic swings successful the market, aft the S&P 500 astatine 1 constituent astir dropped into a "bear market" by astir closing 20 per cent below its record. Often, the whipsaw moves person travel not conscionable time to time but hr to hour.

The S&P 500 inactive remains beneath wherever it was erstwhile Trump announced his sweeping acceptable of tariffs past week connected "Liberation Day."

"Everything is inactive precise volatile, due to the fact that with Donald Trump, you don't cognize what to expect," said Francis Lun, main enforcement of Geo Securities. "This is truly large uncertainty successful the market. The menace of recession has not faded."

One encouraging signal, though, is coming from the enslaved market, wherever accent seems to beryllium easing.

The enslaved marketplace has historically played the relation of enforcer against politicians and economical policies it deemed imprudent. It helped topple the United Kingdom's Liz Truss successful 2022, for example, whose 49 days successful bureau made her Britain's shortest-serving premier minister.

James Carville, an advisor to erstwhile U.S. president Bill Clinton, besides famously said he'd similar to beryllium reincarnated arsenic the enslaved marketplace due to the fact that of however overmuch powerfulness it wields.

Earlier this week, large jumps for U.S. Treasury yields had rattled the market, truthful overmuch that Trump said connected Wednesday helium had been watching however investors were "getting a small queasy."

LISTEN | What does the banal marketplace chaos mean for your money?:

Several reasons could person been down the sharp, abrupt rise, including hedge funds having to merchantability their Treasury bonds in bid to rise currency oregon investors extracurricular the United States dumping their U.S. investments due to the fact that of the commercialized war.

Regardless of the reasons down it, higher yields connected Treasury bonds crank up unit connected the banal marketplace and propulsion rates higher for mortgages and different loans for U.S. households and businesses.

But the 10-year Treasury output has calmed implicit the past day, pursuing Trump's U-turn connected tariffs, and was sitting astatine 4.3 per cent. That's aft it had changeable up to astir 4.5 per cent connected Wednesday greeting from conscionable 4.01 per cent at the extremity of past week.

In banal markets abroad, indexes rallied crossed Europe and Asia successful their archetypal chances to commercialized pursuing Trump's pause. Japan's Nikkei 225 surged 9.1 per cent, South Korea's Kospi leaped 6.6 per cent and Germany's DAX returned 5.2 per cent.