The optimism on Wall Street quickly turned into worry as US stock market futures, oil prices, and the dollar all declined, raising concerns about the potential long-term impact of the trade war on the American economy.

S&P 500 futures dropped by 1.8%, reversing the almost 10% increase from the previous day. The dollar experienced a third consecutive day of decline, while Brent crude dropped below $64 per barrel. Investors sought safety in gold, the Swiss franc, and yen, while bonds saw an increase in demand.

Although investors initially celebrated President Trump's decision to halt some tariffs, leading to a remarkable surge in US stocks, attention has shifted to the effects of an economic slowdown and sustained market volatility. Market participants are closely monitoring consumer inflation data and a Treasury auction of 30-year bonds for any indicators of apprehension towards US debt ownership.

Experts like Colin Graham from Robeco Groep observed that the repercussions of the trade actions cannot be easily reversed with a single statement. Wall Street strategists advised against chasing market gains or buying on dips, suggesting a cautious approach towards US markets. Concerns about a potential recession persist, even if the tariff pause continues.

Stocks of companies like Tesla Inc. and Nvidia Corp. fell by about 3% in premarket trading following the previous day's significant gains. The intensifying trade war between the US and China has led to uncertainty among global companies, pushing some to delay orders.

As tensions continue to rise, both countries are moving further apart economically due to increasing tariffs on exports. China is considering stimulus measures and allowing its currency to depreciate to support its economy, while market experts anticipate ongoing policy uncertainties and potential impacts on US Treasuries and global markets as a whole.