Wall Street’s burst of euphoria flipped back to unease, with a slide in US stock futures, oil and the dollar pointing to concern that the trade war will bring lasting damage to the American economy.

S&P 500 futures sank 1.5%, indicating a pullback from Wednesday’s almost 10% surge. The dollar fell for a third day. Bonds advanced and investors looked for safety in gold, the Swiss franc and yen. Brent crude sank below $64 a barrel.

UK shares rose on Thursday in broad-based gains after U.S. President Donald Trump announced an immediate 90-day pause on many tariffs, bringing relief to investors following the recent global market rout.

As of 1015 GMT, the blue-chip FTSE 100 rose 4.5%, on pace to post biggest one-day jump since November 2020.

The midcap FTSE 250 index climbed 4.7%, poised for its biggest single-day advance since March 2022.

In the dramatic policy shift on Wednesday, Trump suspended most of the hefty tariffs less than 24 hours after they kicked in, providing relief to rattled global markets.

However, he simultaneously escalated the trade conflict with China by raising tariffs on Chinese imports to 125% from 104%, which had only taken effect on Wednesday.

Asian stock markets faced a heavy sell-off on Thursday after US President Donald Trump announced reciprocal tariffs on multiple countries, including India. The move triggered a wave of uncertainty, leading to sharp declines across major indices in the region.

Japan’s Nikkei 225 index dropped 2.69 per cent, while Hong Kong’s Hang Seng index fell by 1.80 per cent. South Korea’s KOSPI index also declined by 1.3 per cent.

The negative sentiment was not limited to Asia, as the futures of US stock markets also showed signs of distress. Dow Jones Futures were down by 1.78 percent, indicating that American markets had also reacted unfavorably to the tariff announcement.

Indian stock market futures were also under pressure. Gift Nifty futures declined by 1.11 percent before the opening of the market on Thursday, suggesting that Indian markets might open lower in response to the global downturn.