Trump's Trade Tango: Markets Whipsaw Amid Tariff Turmoil

US stocks are reversing over half of their previous gains as President Trump's trade tariffs create havoc and uncertainty in the market. Despite temporary reprieves, the threat of recession looms as fluctuating tariffs dampen economic growth prospects, impacting corporate profits and global market stability.

US stocks are surrendering more than half of their historic gains as President Donald Trump's trade war continues to unsettle the economy. Despite a temporary cooling of tensions, the S&P 500 faced a midday decline of 5%, reversing a 9.5% surge from tariffs pause by Trump.

The uncertainty intensified Thursday after the clarification that Chinese imports would face a 145% tariff, pushing the Dow Jones down 1,701 points and the Nasdaq composite by 5.7%. Trump's shifting strategies and China's retaliation threats contribute to growing volatility.

The turmoil extends beyond US borders as the global market reacts. Stocks in Europe and Asia rallied after Trump's tariff pause, with Japan's Nikkei 225 up 9.1% and Germany's DAX increasing by 4.5%. The bond market, once rattled, shows signs of stabilization amid easing yields.

(With inputs from agencies.)