US markets dropped sharply on Thursday morning, reversing some of the major gains made just a day earlier, as worries about the ongoing global trade war continued to trouble investors, Associated Press (AP) reported.
The S&P 500 opened 2.3% lower, following its historic 9.5% surge on Wednesday — its third-best day since 1940 — after President Donald Trump announced a pause on many tariffs around the world.
The Dow Jones Industrial Average also fell by 685 points, while the tech-heavy Nasdaq composite slipped 2.9%, according to AP.
Although a new inflation report showed better-than-expected results, it wasn’t enough to boost investor confidence.
“Even a strong inflation update couldn’t lift the market,” AP noted, adding that Wall Street is still closely watching developments in the trade tensions that have only cooled slightly.
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