The pulse on Wall Street took a hit on Thursday morning as U.S. stocks opened notably lower following one of the biggest one-day rallies in history just a day earlier. Investors appeared to be locking in their gains after U.S. President Donald Trump backed down on many of his trade tariffs.
About 15 minutes into trading, the Dow Jones Industrial Average had dropped 1.8 percent, trading at 39,859.39. The broad-based S&P 500 fell 2.2 percent to 5,335.61, while the tech-heavy Nasdaq Composite Index declined 2.8 percent to 16,653.99.
Interestingly, the market had been buoyed by a U.S. consumer inflation reading that contracted by 0.1 percent from the previous month, a figure that fell below analyst expectations. Some market watchers believe this data point may pave the way for potential Federal Reserve interest rate cuts. However, the persisting impact of tariff policy shifts—and particularly the escalated tariff action for China—proved to be the dominant factor early in the session.
Analysts noted that given the scope of the previous day's rally, many market participants likely viewed their positions as having reached a breakeven point against the backdrop of tariff, economic, and earnings uncertainties. Patrick O'Hare, an analyst from Briefing.com, remarked, "The backtracking in U.S. stocks is not surprising."
As global financial markets continue to digest these shifts, the unfolding tension between policy adjustments and market dynamics remains a focal point for investors, business leaders, and tech enthusiasts worldwide.
Reference(s):
cgtn.com
