The turbulence in the market triggered by Donald Trump's trade war persisted for a third consecutive day. Stocks, bonds, and commodities experienced drastic fluctuations due to concerns about a potential recession and speculation that Trump might reconsider his approach in response to financial repercussions.

Following market declines in Asia and Europe amid a bleak global economic outlook, the S&P 500 initially dropped significantly but briefly surged with rumors circulating that Trump was considering a tariff delay. However, these hopes faded, leading to another decline in prices. By mid-morning, Trump was threatening to escalate the trade dispute with China unless the country revoked its retaliatory tariffs.

Market volatility extended to other areas, with oil prices decreasing and the VIX Index, also known as the fear gauge, reaching levels reminiscent of the pandemic. Treasury yields rose, reflecting the potential economic impact of tariffs and the strain on the government's finances.

Amid expectations of a global recession, traders increased bets on the Federal Reserve implementing multiple rate cuts to counter the economic repercussions. Meanwhile, Chair Jerome Powell hinted at a cautious approach to monetary policy adjustments, as the trade tensions could fuel inflation.

Overall, it was yet another tumultuous day in financial markets where traders sought any signs of relief. Despite Trump's administration downplaying the market decline as a short-term consequence of their strategy to boost jobs and the economy, markets were cautiously optimistic about the possibility of a shift in approach that could alleviate the stock market's recent downturn.