NEW YORK – U.S. stocks are surrendering most of their historic gains from Wednesday as President Donald Trumpโs trade war continues to confuse and threaten the economy, even if its temperature has cooled a bit.
The S&P 500 fell 5% Thursday. The Dow Jones Industrial Average dropped 1,724 points, and the Nasdaq composite sank 5.7%.
Losses for stocks accelerated after the White House clarified that Chinese imports will be tariffed at 145%, not the 125% rate that Trump had earlier written. The clarification came about after China placed retaliatory taxes of 84% on imports from the U.S.
Kevin Hassett, director of the White House National Economic Council, says the administration already has โoffers on the table from more than 15 countries.โ Hassett says the next step will be determining exactly what Trump wants out of the negotiations.
Not even a better-than-expected report on inflation in the United States could help stocks.
