Wall Street returns lower, NASDAQ gives up 3%

US stock indices tumbled on Thursday once more as investors consider US President Donald Trump’s decision to pause tariffs on most countries as not enough, amid escalation with the world’s second biggest economy, China. 

US President Donald Trump escalated the devastating trade war with China by announcing 125% tariffs on Chinese products.

The tariffs will be immediate and are a response to China's disrespect to global markets as Trump described it.

Simultaneously, Trump announced a 90-day hold on tariffs for most other countries .

The Chinese government announced fresh retaliatory 84% tariffs on US products, deepening the trade war.

Investors are still concerned about the trade escalation between the US and China in particular, and from any potential recession due to the trade war, in turn impacting demand. 

Earlier US data showed consumer prices rose 2.4% y/y in March, below estimates of a 2.5% rise, and down from 2.8% in February.

Core prices, excluding food and energy, rose 2.8%, below estimates of 3.0%.

On trading, Dow Jones tumbled 2%, or 817 points to 39,795 points, while S&P 500 gave up 2.5%, or 135 points to 5321 points, as NASDAQ slid 3%, or 515 points to 16,609 points.