Trade Turmoil: U.S. Markets Plunge Amid Renewed Tariff Tensions

Amid escalating tariff tensions, U.S. stocks plunged as fears of a recession loomed. The S&P 500 fell by 3.5%, with the Nasdaq and Dow Jones also experiencing significant declines. Despite a temporary tariff pause, the uncertainty in global markets continues, raising concerns of prolonged economic instability.

The U.S. markets reeled as fears of a recession sparked by the Trump administration's trade policies prompted a significant downturn. On Thursday, the S&P 500 saw a 3.5% drop, while the Nasdaq declined by 4.3%, and the Dow Jones Industrial Average fell 2.5% amid escalating tensions between major economic powers.

The temporary respite provided by a 90-day pause on some tariffs did little to assuage market anxieties as volatile trading reminiscent of the early COVID-19 pandemic days resurfaced. The U.S. aimed to negotiate new trade agreements with several countries, but skepticism remained high.

While hopes of a potential U.S.-China trade deal linger, Beijing's potential retaliation with increased tariffs looms large. European nations have paused counter-tariffs, yet global economic uncertainties persist, driven by Trump's controversial trade strategies and their impact on international relations and economic growth.

(With inputs from agencies.)