It has been a historic week for the US stock market, marked by sharp market swings due to the ongoing US-China tariff war.

On Thursday, major indexes tumbled: the Dow dropped 2.5%, the S&P 500 slid 3.46%, and the Nasdaq Composite sank 4.31%, erasing much of Wednesday’s historic rally.

Wednesday’s surge was fueled by President Trump’s announcement of a 90-day reciprocal tariff pause for most countries except China.

However, investor confidence has rapidly been eroded by fresh worries about growing trade tensions between the United States and China. With uncertainty remaining about what comes next on tariffs and how the trade measures will affect the economy, markets came under renewed pressure on Thursday.

A growing trade war between Washington and Beijing is indicated by the White House’s confirmation that total tariffs on Chinese imports had increased to 145%. China hit back at the US with a 125% retaliatory tariff on US goods on April 11.

Something big is happening in US Treasuries. Treasuries may no longer be as appealing as they once were as a safe haven, as evidenced by the US 10-year Treasury note yield, which is close to 4.5%, a six-week high.

The sell-off in the bond market this week was a reflection of a larger flight of foreign investors from US assets, which led to a big drop in government bonds, the currency, and stocks as worries about the economic effects of President Trump’s trade policy grew.

With taxes on Chinese goods now as high as 145%, tensions with China have increased. In the meantime, the United States still levies a 25% tax on steel, aluminum, and automobiles, and a 10% tariff on imports from the majority of nations.

Investor mood is still shaky even though Trump’s 90-day truce provided a short-term reprieve and sparked expectations for new trade talks. There are growing concerns about a possible stagflation situation.

Additionally, reports indicate that China is bolstering commercial relations with the EU while developing fresh actions aimed at American companies.

Despite hikes for other needs, March saw the lowest consumer prices in almost five years as lowering gas prices bolstered household budgets. US CPI data for March came in lower than expectations. Even though several of President Donald Trump’s tariffs went into force in March, there was not much impact on consumer prices.

From next week, the US corporate earnings season will take center stage along with the ongoing US-China tariff war. US stock futures opened in the red on Friday, later recovered, and are currently trading flat. Will the indices open lower remains to be seen.

Meanwhile, gold is posting new highs daily and is currently trading above $3,200. Gold rate today in India is Rs 93,380.