Market Turbulence: US Stocks Plunge Amid Trade War Uncertainty

US stocks dropped significantly on Thursday, erasing some gains due to ongoing trade war tensions initiated by President Trump. Despite a pause in tariffs, investor uncertainty persists. Global reactions show mixed market responses, while the bond market remains volatile with fluctuating Treasury yields.

US stocks tumbled on Thursday, undoing a portion of the historic gains seen the previous day, as President Donald Trump's ongoing trade war casts uncertainty over the economy.

The S&P 500 plummeted by 3.5%, erasing part of Wednesday's 9.5% surge, spurred by Trump's decision to halt many tariffs. Meanwhile, the Dow Jones Industrial Average fell by 1,014 points, and the Nasdaq composite dropped 4.3%.

Market volatility persists, fueled by doubts over future economic growth. Trump's tariff strategy, particularly towards China, remains a pivotal factor in the market's unpredictability. Furthermore, reactions around the world reveal a global divide, with European and Asian markets rallying in response to Trump's tariff pause.

(With inputs from agencies.)