U.S. Markets Slide Late Thursday as Trade War Fears Intensify

U.S. Markets Slide Late Thursday as Trade War Fears Intensify

Key Highlights:

• U.S. stock indexes reversed course Thursday, closing sharply lower as renewed trade war tensions rattled investors.

• President Trump escalated tariff measures, contributing to uncertainty across markets.

• Sectors including energy, tech, and consumer discretionary led the declines, while consumer staples held firm.

• Notable corporate movers included SmartRent (SMRT) and Aether Holdings (AETH).

• Crude oil fell sharply; gold continued to rally as investors sought safe havens.

U.S. markets slumped late Thursday, reversing much of the previous day’s gains as fears surrounding the escalating U.S.-China trade war reemerged. Investor sentiment soured after President Donald Trump intensified tariff measures, increasing duties by another 20 percentage points, while temporarily pausing tariffs on most other nations for 90 days.

The Nasdaq Composite plunged 4.3% to close at 16,387.3, the S&P 500 fell 3.5% to 5,268.1, and the Dow Jones Industrial Average lost 2.5% to settle at 39,593.7. All major indexes gave back a significant chunk of Wednesday’s historic rally.

Technology, energy, and consumer discretionary stocks saw the steepest declines, while consumer staples slightly outperformed, eking out gains near the close.

Corporate Highlights:

• SmartRent (SMRT) plunged over 29% after announcing the immediate exit of CEO Shane Paladin. The proptech firm also forecasted a Q1 revenue decline of 18% to 20% year-over-year.

• Aether Holdings (AETH) surged 33% on its Nasdaq debut after pricing its IPO at $4.30 per share, within its expected $4–$5 range.

Commodities and Bonds:

• WTI crude oil dropped 4.6% to $60.07 per barrel, reflecting demand concerns amid trade tensions.

• Gold gained 3.2%, settling at $3,178.70 per ounce, as investors turned to traditional safe havens.

• Treasury yields ended mixed: the 10-year yield rose 2.7 basis points to 4.42%, while the 2-year yield fell 8.9 basis points to 3.86%.