S&P 500 falls over 3% amid trade uncertainty

The S&P 500 Index dropped more than 3% on Thursday as investor concerns grew over escalating trade tensions and potential tariff hikes. The decline erased gains from the previous day’s rally. Other major stock indexes and the US dollar also weakened on April 10, according to Reuters.

On Wednesday, US President Donald Trump announced plans to increase tariffs on Chinese goods. The White House confirmed the move, noting that the existing 10% tariff on nearly all US imports would remain in place. The cumulative tariff rate on Chinese goods had reached 145% per a White House statement reported by CNBC on Thursday.

Despite a recent temporary easing of duties, ongoing uncertainty and fears of economic fallout continued to drive a sell-off in US stocks. 

After Thursday’s drop, the S&P 500 remained 7.1% below its level prior to the recent wave of trade restriction announcements.