US' S&P500 and Dow Jones Industrial Average erased all gains to trade lower on Wednesday, continuing days of bruising losses, as tensions in the global trade arena flared with fresh tit-for-tat tariff announcements from China, the European Union, and Canada.
The S&P 500 trickled 0.3 percent lower, the Dow Jones Industrial Average slipped 112 points, or 0.3 percent, while the tech-heavy Nasdaq Composite bucked the trend with a 0.5 percent gain.
Also read: India to work with US to 'take off' Trump's reciprocal tariffs: Piyush Goyal
Investors appeared to search for a market bottom following a punishing four-day stretch that saw the Dow shed over 4,500 points and the S&P 500 drop 12 percent. The Nasdaq Composite fared even worse, tumbling more than 13 percent during the period.
After a brief period of relief, tensions remained high after China said it would slap an 84 percent tariff on U.S. goods starting Thursday, responding to Washington’s earlier move imposing 104 percent levies on Chinese imports. The European Union, too, entered the fray, approving its first round of retaliatory tariffs on American products set to take effect from April 15.
Canada added to the growing list of trade partners pushing back. On Tuesday, it reaffirmed its decision to impose a 25 percent tariff on vehicles imported from the U.S., including those that fail to meet criteria under the United States-Mexico-Canada Agreement (USMCA), as well as fully assembled cars with parts sourced from outside North America.
President Donald Trump attempted to calm jittery investors via a post on Truth Social, calling for calm and suggesting it's a "great time to buy."
Read more: China hits back with 84% tariff, adds US firms to blacklist as trade war escalates
Despite Trump's post, volatility lingered. On Tuesday, the S&P 500 had surged over 4 percent at its intraday high before closing down 1.6 percent. The Dow followed a similar pattern, reversing a 3.9 percent gain to end the session 0.8 percent lower. The S&P 500 is now nearly 19 percent below its record high.
Adding to the turbulence was a sudden spike in U.S. Treasury yields. The 10-year benchmark yield climbed more than 10 basis points to 4.39 percent on Wednesday and briefly hit 4.5 percent overnight — a sharp rebound from its dip below 4 percent earlier this week.
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