Tariff Concerns Prevail, U.S. Stocks Forfeit Earlier Gains

Team Veye | 11-Apr-2025

The enthusiasm following Trump’s announcement of a 90-day tariff reprieve on Wednesday appeared to be shortlived, as the investors remained worried over the economic impact of the escalating U.S.-China trade face-off.

The end game worries had investors preferring to remain on the sidelines even as Consumer Price Index report released by the Labor Department showed that core inflation was lower in March, falling to a 4 year low.
The Thursday sell off left all the three major U.S indexes into suffering steeply. The tech heavy Nasdaq Composite, which had surged almost 12% a day earlier, lost 4.31% or 737.66 points, to close at 16,387.31. The Dow Jones Industrial Average gave up 2.50%, falling 1,014.79 points to 39,593.66 with S&P 500 ending with a loss of 188.85 points, or 3.46% end the day at 5,268.05.

The upbeat economic data and the U.S.-Europe trade negotiations failed to lift the optimism, as the markets remain wary of tariffs causing rippling effect on the economy.

Investors were assumably fleeing to safe havens with gold moving to another record high.

Source - Reuters

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