Global Trade War Spurs Stock Slide Amid False Pause Report

U.S. stock indexes fell as investors reacted to impending tariffs by President Trump, sparking fears of a trade war. A brief market rally on erroneous reports of a tariff pause was quickly dashed by White House denials. Tech-heavy Nasdaq and Dow entered bear market territory.

The U.S. stock markets faced a downturn during Monday's late morning trade, driven by investor fear following President Donald Trump's global trade war announcements. Reports of temporary tariff relief swayed markets briefly, but swift denials from the White House led to renewed declines.

The S&P 500 dropped 20% intraday from its February high, signaling a potential bear market. Meanwhile, the Dow slid nearly 17% from its December peak. Investors were jolted when markets briefly rallied on false reports of a tariff pause but reversed as clarifications poured in.

Compounded by Trump's announcement of heavy tariffs, trading partners like China fired back, escalating fears of economic stagnation. Since the tariff decision, S&P 500 has seen a 10.5% plummet, evaporating trillions from market value, with Nasdaq and Dow indices hitting bear market levels.

(With inputs from agencies.)