US stocks open in red despite easing inflation, tariff pause

ISTANBUL

US stocks opened in the red Thursday, losing some historical gains that is saw Wednesday, although annual inflation eased more than expected.

US consumer inflation eased to 2.4% in March, slightly below a forecast of 2.5%.

The Dow lost 826.81 points, or 2.04%, to 39,781.64 as of 10 a.m. EDT (1400GMT).

The S&P 500 was down 143.66 points, or 2.65%, to 5,311.41. The Nasdaq fell 589.39 points, or 3.42%, to 16,541.07.

The VIX volatility index, also called the "fear index," rose to 36.88.

Stocks saw steep falls last week after US President Donald Trump imposed higher tariffs on more than 180 nations, ranging from 10% to 50%.

But a sigh of relief came Wednesday after Trump reversed course and paused "reciprocal tariffs" for 90 days on all countries except China. He said he was raising the tariff rate on China to 125%.

Following the move, stocks saw historical gains at the closing bell.

Meanwhile, China said Thursday that the US is exerting “maximum pressure” and using tariffs as a "weapon.” It vowed not to give into Washington's trade moves.

Beijing will not fear the “selfish” moves, Foreign Ministry spokesman Lin Jian told reporters, adding that Beijing's response “will continue until the end.”