US stocks extended their decline on Thursday, reversing much of the previous day’s historic rally, as the United States escalated tariffs on China. This renewed uncertainty around economic policy and deepened fears that President Trump’s ongoing trade wars could push the global economy into recession. The S&P 500 dropped by 5.50%, the Dow Jones fell by over 1 600 points, and the Nasdaq underperformed with a 5.40% slump, reflecting the tech sector’s sensitivity to shifts in risk sentiment. The White House announced an increase in tariffs on Chinese imports to 145%, up from 125% the day before, while declining to comment on potential duties on base metals and chemicals worldwide.

In South Africa, the rand weakened on Thursday amid global market jitters, while local stocks rallied as investors responded to US President Donald Trump’s announcement of an immediate 90-day pause on tariffs for many countries. By 17h03 GMT, the rand was trading at 19.5125 against the US dollar, around 1% weaker than its previous close. This followed a record low of 19.9325 reached on Wednesday, the day the country-specific import tariffs came into effect.

The FTSE 100 surged 3.20% on Thursday—its strongest one-day gain since 2020—on the back of Trump’s decision to temporarily suspend new tariffs for most trade partners. Although tariffs on China were increased, the broader reprieve helped ease global economic concerns and buoyed investor sentiment. Financial and commodity-linked shares led the rally, with Anglo American rising 7.70% amid optimism over the planned sale of its steelmaking coal unit, despite a recent fire at its Australian operations.

Major European indices also rebounded strongly. The STOXX 50 closed up 4.40%, while the broader STOXX 600 gained 4%, as reciprocal tariff suspensions from both the EU and US helped alleviate fears of a looming global slowdown and inflationary pressures. The European Union announced a 90-day suspension of planned tariffs on US goods, signalling a window for trade negotiations following the US’s easing of levies on countries that had not retaliated against earlier measures.

In Asia, Japan’s Nikkei 225 soared by 9.13% to close at 34 609, while the broader Topix index jumped 8.09% to 2 539. This dramatic rebound erased earlier losses from the week and came in response to Trump’s unexpected announcement to lower new tariff rates on imports from most trade partners to 10% for 90 days. In China, mainland equities posted a third consecutive session of gains, with the Shanghai Composite rising 1.16% to 3 224 and the Shenzhen Component climbing 2.25% to 9 755, despite intensifying trade tensions with the US.

In commodities, WTI crude oil futures fell more than 4% to below $60 per barrel on Thursday, reversing a 4.60% gain from the previous session, as renewed trade tensions stoked concerns over global demand. Meanwhile, gold climbed towards $3 120 per ounce, nearing record highs and extending a more than 3% gain from Wednesday, driven by strong safe-haven demand amid the escalating US-China dispute.