04:48 PM EDT, 04/10/2025 (MT Newswires) -- US equity indexes closed Thursday session at losses as investors weighed the potential impact of the escalating trade war between the US with China and whether it would trigger an economic downturn.

The Nasdaq Composite Index sank 4.3% to 16,387.3 and the S&P 500 fell 3.5% to 5,268.1. The Dow Jones Industrial Average dropped 2.5% to 39,593.7, with all of the major gauges giving back a significant portion of Wednesday's outsized advance. Energy, technology and consumer discretionary recorded the largest slides, while consumer staples bucked the trend just before the close.

President Donald Trump kept tariff and trade war worries simmering on Thursday, adding another 20 percentage points to the 125% rate he announced on Wednesday, while pausing tariffs on most other countries for 90 days.

Beijing responded by reducing the number of US films that can be shown inside the world's second largest economy, sending the shares of US studio companies lower.

Investors also shrugged off better-than-expected economic news, with the Bureau of Labor Statistics saying consumer prices fell 0.1% during March. It was the first monthly drop for the inflation since May 2020 as the decline in energy prices more than offset increases for food last month.

In company news, SmartRent ( SMRT ) tumbled more than 29% after saying its board asked Shane Paladin to step down as president and chief executive officer, effective immediately. The real estate technology company also said it expects Q1 revenue to decline 18% to 20%, compared with year-ago levels.

Aether Holdings (ATHR) shares climbed over 33% on their Nasdaq debut after the financial technology company priced its initial public offering of 1.8 million shares at $4.30 per share, falling within its expected $4 to $5 range.

West Texas Intermediate crude oil futures settled 4.6% down at $60.07 per barrel. Gold rose 3.2% to $3,178.70 per ounce.

US Treasury yields finished mixed, with the 10-year yield adding 2.7 basis points to 4.42% while the two-year slumped 8.9 basis points to 3.86%.