US stocks open lower a day after Trump’s tariff pause

The New York Stock Exchange open down in the morning while the S&P 500 index of the largest firms listed in the US opened down 2.1 per cent, the Dow Jones index was down 1.6 per cent and the Nasdaq was down 2.8 per cent.

The New York Stock Exchange saw massive gains yesterday, but it was a different story when trading opened a short while ago.

US Stocks had one of their best days in history on Wednesday as investors registered their relief over Trump’s decision. Asian and European markets have followed those rallies.

Trump did not extend his tariff pause to Beijing, instead raising the tax rate on Chinese imports to 125 percent. China’s Ministry of Commerce said while the “door to dialogue is open”, Beijing is willing to “fight to the end”.

The European Union has put its counter-tariffs on hold after United States President Donald Trump announced a 90-day pause on his “reciprocal tariffs” on nearly 60 countries while keeping a baseline 10 percent tariff in place.

The bloc’s Ursula von der Leyen warned, however, that if negotiations with Washington “are not satisfactory, our counter measures will kick in”.

In contrast, European and Asian markets saw gains earlier today.

There is clearly still a lot of uncertainty about the medium-term economic picture, as our business experts have been explaining.

Yesterday, the US stock market had one of its best trading days on record, with the S&P 500 jumping 9.5% in its biggest rally since 2008.

Now it appears the initial excitement around Trump’s tariff reversal has died down as shares dip in the US this morning.

That initial positivity seems to have given way to uncertainty as firms figure out what the tariff pause means for them.

AJ Bell investment director Russ Mould says the US share price slump may be a long and drawn out process. “Disappointment sets in gradually,” he says.

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