Stocks plummeted worldwide on Thursday as investors worried about global trade tensions, particularly after US President Donald Trump threatened duties of 200% on European beverage imports if the EU removes US whiskey surcharges. The Dow Jones Industrial Average fell 135.84 points, or 0.33%, to 41,212.42, while the S&P 500 dropped 22.11 points, or 0.41%, to 5,576.26.
US Treasury yields rose on concerns about potential higher inflation due to tariffs, despite cooler-than-expected inflation data from the Labor Department’s Bureau of Labor Statistics. The yield on benchmark US 10-year notes increased 1.2 basis points to 4.328%.
European stocks fared better, thanks in part to government spending plans for defense and a potential Ukraine peace deal. However, investors remain cautious about global trade tensions.
The uncertainty surrounding tariffs has led some economists to downplay the significance of recent inflation data, highlighting the need for policymakers’ actions rather than just “backward-looking” economic releases. The US S&P 500 index is now down over 5% for the year, but European stocks are up more than 6% year-to-date.
In currencies, the US dollar was mixed, with a decline against the euro and Japanese yen but an increase against the Swiss franc. Oil prices slipped as traders weighed macroeconomic concerns and demand versus supply expectations.
Source: https://www.investing.com/news/economy-news/stocks-gain-after-mild-us-inflation-yields-buoyed-by-trade-tensions-3925681