Wall Street today: Nasdaq tanks 5.40%, S&P 500 dips 4.60%, Dow Jones loses 3.82% as US-China trade war deepens

US stock indices sharply declined on Thursday after President Donald Trump announced a 90-day pause on hefty tariffs for dozens of countries, but raising levies on China to 125%.

As of 1:29 PM EDT, the S&P 500 was down 4.60%, the Dow Jones Industrial Average was down 3.82%, and the Nasdaq Composite was 5.40% lower.

At the opening bell, the Dow Jones Industrial Average fell 611.5 points, or 1.51%, to 39,996.93. The S&P 500 fell 103.7 points, or 1.90%, to 5,353.15, while the Nasdaq Composite dropped 489.5 points, or 2.86%, to 16,635.454.

The US dollar weakened 2.28% against the Japanese yen to 144.35. The euro rose 2.19% against the dollar.

Trump Tariff Reversal

President Trump said on Wednesday that he would temporarily lower the hefty duties imposed on dozens of countries, but ramped up the tariff on China to 125% from 104% after Beijing's decision to impose an 84% levy on the US goods.

Meanwhile, China reached out to other nations in an attempt to form a united front against Trump.

While the European Union on Thursday said it will put its trade retaliation measures on hold for 90 days and leave room for a negotiated solution.

In the bond market, the 10-year Treasury yield was at 4.30%.

US inflation

A Labor Department report said on Thursday the US consumer prices fell last month as the cost of gas, airline fares, and hotel rooms declined.

Consumer Price Index (CPI) rose just 2.4% in March from a year earlier, down from 2.8% in February.

On Wednesday, the Federal Reserve’s minutes of its March meeting showed policymakers were nearly unanimous in thinking the US economy faced simultaneous risks of higher inflation and slower growth.

Bullion

Gold prices continued to rise on Thursday, driven by an escalating trade war between the United States and China.

Spot gold was up 1.3% at $3,122.02 an ounce at 1129 GMT. US gold futures were up 1.9% at $3,137.80.

Spot silver fell 0.6% to $30.85 an ounce, platinum lost 0.4% to $933.55, and palladium was down 1.7% at $915.68.

Crude oil

Oil prices retreated by more than 3% on Thursday on fears of a deepening US-China trade war.

Brent futures fell $2.27, or 3.5%, to $63.21 a barrel by 1317 GMT. US West Texas Intermediate crude futures dropped $2.26, or 3.6%, to $60.09.