The New York Stock Exchange closed the day with a decline due to ongoing concerns about US President Donald Trump’s tariff policy.

At closing, the Dow Jones index lost over 1000 points, dropping by 2.50% to 39,593.66 points. The S&P 500 index decreased by 3.46% to 5,268.05 points, and the Nasdaq index fell by 4.31% to 16,387.31 points. Following President Trump’s decision to postpone the introduction of mutual tariffs within 24 hours of becoming effective, markets experienced a rally on Wednesday. However, sales pressure increased again due to renewed concerns about tariffs. Trump announced on his Truth Social media account that additional tariffs on US trade partners would be suspended for 90 days, during which a basic tariff rate of 10% would be enforced. He also stated that he had raised the tariff on China to 125%. Following this announcement, the European Union announced that it would suspend its prepared measures against US steel and aluminum imports for 90 days, while the Chinese government indicated that they would not back down in the escalating tariff tensions. The White House clarified the tariff rate for China, stating that the previously announced 125% only applied to mutual tariffs, and the total tariff rate reached 145% when including those imposed due to the fentanyl crisis. Analysts expressed concerns that the escalating trade tensions between Washington and Beijing overshadowed the positive economic data in the US and optimism about trade negotiations, triggering fears of lasting damage to economic growth from a trade war between the world’s two largest economies. Furthermore, analysts noted that despite the suspension of additional tariffs for 90 days, uncertainties persisted, leading investors to exercise caution and evaluate the economic consequences, thus anticipating continued market volatility. As a result, the VIX Index, also known as the “fear index,” surpassed 40 with a 21% increase. In terms of macroeconomic data, figures released today in the US showed that inflation continued to slow down, with the Consumer Price Index (CPI) decreasing by 0.1% in March on a monthly basis and below expectations at 2.4% on an annual basis. This marked the first monthly decline in the CPI since May 2020. The core CPI, which excludes volatile energy and food prices, also saw a modest increase of 0.1% on a monthly basis and 2.8% annually, falling below expectations. Analysts pointed out that an upward movement in inflation data has not been observed yet, and the impact of implemented tariffs is expected to be seen in the coming months. In the week ending April 5, the number of initial jobless claims in the US increased by 4,000 compared to the previous week to reach 223,000, in line with market expectations.

TARIFF UNCERTAINTY AFFECTS THE FED
Tariff uncertainty complicates the path of the Federal Reserve’s (Fed) monetary policy, and statements from Fed officials have been closely monitored. Chicago Fed President Austan Goolsbee described tariffs as a “stagflationary shock” that poses a challenge to the Fed’s price stability and maximum employment goals. Goolsbee noted that the sooner uncertainty diminishes, the faster the Fed can reduce borrowing costs. Dallas Fed President Lorie Logan stated that higher than expected tariffs are likely to increase both unemployment and inflation. Kansas City Fed President Jeff Schmid mentioned that if they must balance inflation control with full employment goals, they would prioritize controlling inflation. Fed Board Member Michelle Bowman stated that the US economy continues to stay strong, but the effects of trade policies remain uncertain. Analysts indicated that tomorrow’s release of the Producer Price Index (PPI) and the financial results of major banks such as JPMorgan Chase, Wells Fargo, and Morgan Stanley will be closely watched by investors for further information on the inflation outlook and the economic trajectory in the US.