US stock markets opened in negative territory Thursday morning, as investors remained cautious after a week marked by sharp swings and heightened volatility. The early declines come as investors analyse economic data, rising bond yields, and global uncertainty heading into the final sessions of a particularly turbulent week.
As of 11:10 a.m. ET, the Dow Jones Industrial Average fell 149.73 points to 39,443.93 (-0.38%), while the NASDAQ 100 dropped 30.26 points to 16,357.05 (-0.18%). The S&P 500 slipped 15.43 points to 5,252.62 (-0.29%). In commodities, gold extended gains, rising $70.30 to $3,247.80 (+2.21%), and oil edged higher by $0.28 to $60.35 (+0.47%).
Bond markets continued to feel pressure, with the US 10-year Treasury yield jumping to 4.571%, up 0.179 points (+4.076%). The euro traded at 1.133 against the dollar, a 1.161% increase. Meanwhile, market volatility spiked again, with the VIX climbing 4.42 points to 45.14, up 10.85%, reflecting rising uncertainty among investors.
US wholesale prices dropped
US wholesale prices dropped in March for the first time since October 2023, providing fresh evidence that inflationary pressures may be easing — though the broader economic outlook remains uncertain due to escalating trade tensions between the US and China.
The Labour Department said Friday that its Producer Price Index (PPI), which measures prices before they reach consumers, fell 0.4% in March from the previous month. That marked the first monthly decline in five months. On a year-over-year basis, producer prices rose 2.7%, a slowdown from February’s 3.2% and below the 3.3% gain economists had expected.
Much of the monthly decline was driven by a sharp drop in energy and food costs. Gasoline prices tumbled 11.1% in March, while egg prices — which had previously surged due to bird flu outbreaks — plunged by 21.3%.
Core wholesale inflation, which strips out food and energy, also declined 0.1% — its first monthly drop since July. Over the past year, core producer prices rose 3.3%, also coming in below expectations.
The PPI report follows another encouraging inflation reading on Thursday, when the Labor Department said the Consumer Price Index (CPI) rose just 2.4% year-over-year in March — the smallest increase since September. Core consumer prices registered their slowest annual gain in nearly four years, signalling that price pressures may finally be stabilizing after a long bout of high inflation.
However, despite the positive inflation data , financial markets remain on edge as the US -China trade conflict escalates. President Donald Trump has reignited global trade tensions by sharply increasing tariffs on Chinese imports to a staggering 145%. At the same time, the administration has slapped a 10% tariff on imports from most other countries — a measure that could be raised further after a 90-day review. While Trump temporarily paused tariffs for some nations earlier this week, the China tariffs remain in full force.
In retaliation, China announced Friday that it will raise tariffs on a wide range of US goods, increasing rates from 84% to 125%. The move marks the latest escalation in the ongoing trade war between the world’s two largest economies. China’s Finance Ministry condemned the US actions as “economic bullying,” and vowed to "resolutely counter and fight to the end." The new Chinese tariffs are set to take effect Saturday.
Beijing also said it plans to file another complaint with the World Trade Organization over the US tariffs. Chinese President Xi Jinping, speaking during a meeting with Spanish Prime Minister Pedro Sánchez, struck a defiant tone: “There are no winners in a tariff war,” Xi said, adding that China “has always relied on itself and hard work for development” and “does not fear any unreasonable suppression.”
Uncertainty in global markets
The uncertainty surrounding trade policy has unnerved investors and led to heightened volatility in global markets. While there was some relief when Trump paused tariffs for certain nations, many fear that prolonged friction between the US and China could weigh on global growth and push the US closer to recession.
European markets reflected that anxiety on Friday, reversing early gains as trade concerns deepened. By late morning in London, the pan-European Stoxx 600 was down 1.3%, while Germany’s DAX fell 1.7%, France’s CAC 40 slipped 1.3%, and the U.K.’s FTSE 100 dropped 0.4%. Investors moved away from riskier assets, with industrials, technology, financials, and energy stocks leading losses. Meanwhile, traditionally defensive sectors such as utilities and consumer durables outperformed as traders sought safe havens.
As of 11:10 a.m. ET, the Dow Jones Industrial Average fell 149.73 points to 39,443.93 (-0.38%), while the NASDAQ 100 dropped 30.26 points to 16,357.05 (-0.18%). The S&P 500 slipped 15.43 points to 5,252.62 (-0.29%). In commodities, gold extended gains, rising $70.30 to $3,247.80 (+2.21%), and oil edged higher by $0.28 to $60.35 (+0.47%).
Bond markets continued to feel pressure, with the US 10-year Treasury yield jumping to 4.571%, up 0.179 points (+4.076%). The euro traded at 1.133 against the dollar, a 1.161% increase. Meanwhile, market volatility spiked again, with the VIX climbing 4.42 points to 45.14, up 10.85%, reflecting rising uncertainty among investors.
US wholesale prices dropped
US wholesale prices dropped in March for the first time since October 2023, providing fresh evidence that inflationary pressures may be easing — though the broader economic outlook remains uncertain due to escalating trade tensions between the US and China.
The Labour Department said Friday that its Producer Price Index (PPI), which measures prices before they reach consumers, fell 0.4% in March from the previous month. That marked the first monthly decline in five months. On a year-over-year basis, producer prices rose 2.7%, a slowdown from February’s 3.2% and below the 3.3% gain economists had expected.
Much of the monthly decline was driven by a sharp drop in energy and food costs. Gasoline prices tumbled 11.1% in March, while egg prices — which had previously surged due to bird flu outbreaks — plunged by 21.3%.
Core wholesale inflation, which strips out food and energy, also declined 0.1% — its first monthly drop since July. Over the past year, core producer prices rose 3.3%, also coming in below expectations.
The PPI report follows another encouraging inflation reading on Thursday, when the Labor Department said the Consumer Price Index (CPI) rose just 2.4% year-over-year in March — the smallest increase since September. Core consumer prices registered their slowest annual gain in nearly four years, signalling that price pressures may finally be stabilizing after a long bout of high inflation.
However, despite the positive inflation data , financial markets remain on edge as the US -China trade conflict escalates. President Donald Trump has reignited global trade tensions by sharply increasing tariffs on Chinese imports to a staggering 145%. At the same time, the administration has slapped a 10% tariff on imports from most other countries — a measure that could be raised further after a 90-day review. While Trump temporarily paused tariffs for some nations earlier this week, the China tariffs remain in full force.
In retaliation, China announced Friday that it will raise tariffs on a wide range of US goods, increasing rates from 84% to 125%. The move marks the latest escalation in the ongoing trade war between the world’s two largest economies. China’s Finance Ministry condemned the US actions as “economic bullying,” and vowed to "resolutely counter and fight to the end." The new Chinese tariffs are set to take effect Saturday.
Beijing also said it plans to file another complaint with the World Trade Organization over the US tariffs. Chinese President Xi Jinping, speaking during a meeting with Spanish Prime Minister Pedro Sánchez, struck a defiant tone: “There are no winners in a tariff war,” Xi said, adding that China “has always relied on itself and hard work for development” and “does not fear any unreasonable suppression.”
Uncertainty in global markets
The uncertainty surrounding trade policy has unnerved investors and led to heightened volatility in global markets. While there was some relief when Trump paused tariffs for certain nations, many fear that prolonged friction between the US and China could weigh on global growth and push the US closer to recession.
European markets reflected that anxiety on Friday, reversing early gains as trade concerns deepened. By late morning in London, the pan-European Stoxx 600 was down 1.3%, while Germany’s DAX fell 1.7%, France’s CAC 40 slipped 1.3%, and the U.K.’s FTSE 100 dropped 0.4%. Investors moved away from riskier assets, with industrials, technology, financials, and energy stocks leading losses. Meanwhile, traditionally defensive sectors such as utilities and consumer durables outperformed as traders sought safe havens.
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