US shares closed sharply lower on Thursday and dried up some of the previous day’s rally as investors digested President Donald Trump’s decision to suspend some tariffs while escalating a trade war with China.
Hours after the markets were opened, the White House said the US tariff rates in China are at 145%, more than the 125% tax that had been reported to a large extent one day earlier. The news sent stocks that fell longer than they had earlier in the day.
Dow Jones Industrial Average fell 1,014 points, or 2.5%, on the market closely. S.& P 500 dropped 3.4%while the tech-heavy Nasdaq dropped 4.3%.
Footwear giant Nike, which boasts a scattered global supply chain, then the stock plum 8%.
Tesla, the electric carmaker led by Trump adviser Elon Musk, fell 7%. Shares of Chipmaker Nvidia fell 5%.
Some larger companies expanded gains from a day earlier.
Telecommunications at& T and Verizon crossed each more than 0.75%.
China reprimanded the United States early Thursday morning in response to Trump’s decision to wander cumulative tariffs on Chinese goods to 145%. Beijing said it would limit the import of Hollywood movies.
The United States exerts “tariffs as a weapon to exert maximum pressure and seek selfish gains,” Chinese spokesman for Chinese Foreign Ministry Lin Jian told Jianans on a briefing on Thursday.
Losses in the stock market early Thursday deleted some of the historic rally on Wednesday, offset by Trump’s customs announcement. Nasdaq rose 12.1% at Wednesday’s closure, the index’s biggest one-day win since 2021. Dow jumped 7.8%, its largest one-day increase in five years.
On Wednesday afternoon, Trump announced a 90-day break on the higher tariffs for most countries he announced last week while maintaining a 10% baseline duty everywhere.
Trump also announced additional tariffs for China, increasing the cumulative tariffs on Chinese goods from 104% to 125%.
Before the downturn in US stocks, Asian and European markets gathered on Thursday.
The most important Asian indices recorded remarkable recovery on Thursday – marking a postponement to most after a week’s turbulence and sale driven for fear of escalating trade wars and recessions.
In Japan, Nikkei closed 225 9.1%, and the wider Topix index closed 8%. South Korea’s Kospi closed almost 6.6%.
Taiwan’s Taiex index burst 9.3%and Australia’s ASX 200 increased 4.5%.
Currency retailers are working in front of an electronic board showing Korea Composite Aktieburt Index (KOSPI) and the exchange rate between the US dollar and South Korean won in Seoul, South Korea, April 10, 2025.
Soo-Hyeon Kim/Reuters
The most important Chinese markets were also in the green despite Trump’s decision to raise customs duties on Chinese goods to a total of 125%. The president claimed a “lack of respect” from Beijing, where his latest broad side came after China announced 84% mutual tariffs on US goods on Wednesday.
Hong Kongs Hang Bed -Index rose 2%, Shanghai Composite Index jumped 1.1%, and the Shenzhen Component Index increased 2.2%.
President Donald Trump is preparing to sign executive orders such as State Cancer Secretary Scott Bessent, Trade Secretary Howard Lutnick, domestic secretary Doug Bergum, and transport secretary Sean Duffy Watch in Oval Office, April, April 9, 2025 in Washington.
Anna Moneymaker/Getty Images
In Europe, Pan-Continental Stoxx 600 index jumped more than 7%. On Thursday, the European Union announced a 90-day break in retaliatory goose aimed at the United States, which the EU had approved a day earlier.
After opening, Britain’s FTSE 100 6%, France’s CAC 40 6.4%, Germany’s DAX 8%, Italy’s FTSE MIB 7.5%and Spain’s IBEX 7.2%.
