admin US markets plunged on Thursday, giving back a significant portion of Wednesday’s historic gains, as President Donald Trump’s escalating trade war continued to weigh on economic sentiment.
The S&P 500 fell by 3.5 per cent, cutting into Wednesday’s dramatic 9.5 per cent rally that followed Trump’s announcement of a temporary halt to many tariffs globally. The Dow Jones Industrial Average declined by 1,014 points, or 2.5 per cent, while the tech-heavy Nasdaq composite slumped by 4.3 per cent.
In commodities, the May crude oil contract fell by US$2.28 to US$60.07 per barrel, and the May natural gas contract dropped 26 US cents to US$3.56 per mmBTU. Meanwhile, the June gold contract rose by US$98.10 to US$3,177.50 an ounce, and the May copper contract increased by 14 US cents to US$4.34 a pound.
The Canadian dollar traded at 71.35 US cents, up from 70.67 US cents on Wednesday.
UBS strategist Bhanu Baweja commented on the tariff developments, writing: “Trump blinks – but the damage isn’t all undone.” Despite the partial tariff retreat, Trump has intensified his focus on China, imposing tariffs well over 100 per cent on Chinese imports. Even if those were eventually reduced to around 50 per cent, or if other countries faced just 10 per cent tariffs, Baweja warned the economic impact could still undermine US corporate profit forecasts.
Thursday’s equity market losses accelerated after the White House clarified that the United States would be imposing a 145 per cent tariff on Chinese imports—higher than the 125 per cent figure Trump had mentioned in a Truth Social post on Wednesday, once all previously announced tariffs were factored in. At one point, the S&P 500’s losses exceeded 6 per cent.
“Everything remains extremely volatile, because with Donald Trump, nothing is predictable,” said Francis Lun, CEO of Geo Securities. “There’s considerable uncertainty, and the threat of recession hasn’t gone away.”
In response to rising tensions, China has begun rallying support from other countries in an apparent bid to form a united front against US measures. Simultaneously, it is stepping up its own counter-tariffs.
Shares of Warner Bros. Discovery—producer of A Minecraft Movie—plunged 12.5 per cent, one of the sharpest falls on Wall Street, after China announced plans to “appropriately reduce the number of imported US films.” The Walt Disney Company also saw its stock drop by 6.8 per cent.
A spokesperson for the China Film Administration remarked that Chinese viewers were increasingly disinclined towards American films, calling it an “inevitable reaction” to the “reckless imposition of tariffs” by the United States.
The previous day, Trump and Treasury Secretary Scott Bessent had issued a stern message to global partners after announcing a pause on most tariffs: “Do not retaliate, and you will be rewarded.”
In a measured response, the European Union stated on Thursday it would suspend its retaliatory trade measures for 90 days, allowing time for potential negotiation.
The turbulence extended to the bond market, which had earlier shown signs of easing pressure.
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