FX.co ★ US Stocks Lower on Trade Concerns

US stock markets experienced a downturn on Thursday. The S&P 500 and Nasdaq both decreased by 0.2%, while the Dow Jones Industrial Average dropped more than 230 points. This decline was primarily driven by renewed uncertainties surrounding trade, which unsettled investor confidence. Concerns arose after President Trump revealed plans to dispatch official communications to major trade partners within the next two weeks, outlining unilateral tariff actions aimed at negotiating trade agreements. This development comes as the current 90-day suspension on reciprocal tariffs is set to expire next month. Concurrently, President Trump announced that the US had secured a favorable trade deal with China. On the economic data front, producer prices fell short of expectations, bolstering the perspective that tariff-related inflationary pressures are not yet evident. Additionally, initial claims for unemployment benefits slightly exceeded predictions. In terms of sector performance, declines were led by energy, financials, industrials, and communication services, whereas utilities outperformed other sectors.