10.04.202516:17:47UTC+00US Stocks Extend Plunge

U.S. stocks continued their downward trajectory on Thursday, erasing much of the previous day's significant rally. This shift followed the U.S.'s decision to further increase tariffs on China, intensifying the uncertainty surrounding economic policy and heightening fears that trade tensions initiated by President Trump might precipitate a recession. The S&P 500 dropped by 5.5%, the Dow Jones Industrial Average fell more than 1,600 points, and the Nasdaq lagged behind with a 5.4% decrease, as technology companies are particularly sensitive to shifts in investor sentiment. The White House announced an increase in tariffs on China to 145%, up from the prior rise to 125%, while withholding comments on potential global tariffs on base metals and chemicals. As a result, investors' focus shifted back to growth concerns, despite yesterday’s rally sparked by a temporary tariff hold from Trump and today’s Consumer Price Index report indicating disinflation. Technology giants led the market decline, with Tesla plummeting by 10% and Nvidia, Apple, and Amazon each dropping by more than 6.5%. Energy stocks also suffered as oil prices fell, with Chevron and Exxon Mobil each experiencing a 6% decline.