Stocks Continue Their Dive as Tariff War Escalates
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Hopes for a quick end to extreme volatility were dashed on Wall Street, with stocks and bonds staging big reversals after a White House official said the US is moving forward with tariffs on China as high as 104%. The S&P 500 has lost close to a year of gains.
Photographer: Michael Nagle/Bloomberg
With the Nasdaq 100 already in a bear market, soon it may be the S&P 500’s turn. Wild swings lashed Wall Street for a fourth straight session as back-and-forth trade threats between the US and China knocked stocks even lower, erasing an early rally after three days of tariff-induced carnage. The S&P 500 fell almost 1.6%, leaving it on the border of bear country.
Hopes for a quick end to extreme volatility were dashed when a Trump administration official said the White House is moving forward with more tariffs on Chinese goods—as high as 104%—even after Beijing vowed to “fight to the end” in response to US President Donald Trump’s earlier levies. Equities continued their dive as Chinese Premier Li Qiang said his country has ample policy tools to “fully offset” negative external shocks. Treasury two-year yields tumbled as traders boosted bets on Federal Reserve rate cuts. The S&P 500 ended the day missing close to a year’s worth of gains.