US equity markets ended Thursday's regular session with steep losses. The S&P 500 dropped 3.46%, the Nasdaq 100 fell 4.31%, and the Dow Jones Industrial Average declined 2.50%.

The US dollar extended its losses after suffering its worst one-day drop in three years. Meanwhile, equities and bonds faced renewed selling pressure as an escalating global trade war continued to erode already fragile risk sentiment. The euro surged to a three-year high.

Asian stock indices were on track for a third consecutive weekly decline, as earlier relief gave way to growing concern following the White House's announcement that US tariffs on Chinese imports had risen to 145%. US Treasuries continued their weeklong slide. In a clear sign that investors were seeking shelter outside the United States, the euro jumped 1.6%, and the Swiss franc reached its highest level in a decade. Gold also set a new record high.

Just a day after financial markets rallied on President Donald Trump's decision to delay some of the sweeping tariffs by 90 days, Thursday's sell-off revealed widespread skepticism over the effectiveness of the proposed negotiations and fears of further escalation with China.

It is increasingly clear that the frequent shifts in President Trump's tariff strategy have undermined investor confidence in both the US government and economy. Against this backdrop, it is no surprise that following a brief pause, the sell-off in US stocks, bonds, and the dollar resumed with renewed intensity.

Investors appeared to dismiss positive macroeconomic data, including a sharper-than-expected drop in US inflation, choosing instead to focus on growing uncertainty surrounding US trade policy. Markets are reacting less to the tariffs themselves and more to the unpredictability of the administration's actions, which makes forecasting corporate earnings increasingly difficult.

Moreover, concerns about a deepening trade war and the latest tariff hike on China added to fears of a slowdown in global economic growth. Many analysts warn that if no compromise is reached, the global economy may face significant challenges. Lower corporate profits would inevitably weigh on global equity markets.

In light of these risks, investors sought safety by rotating out of equities and into haven assets such as gold and foreign sovereign bonds.

Emerging market currencies such as the South Korean won and Thai baht appreciated against the US dollar. The Japanese yen also strengthened, rising toward 143 per dollar, its highest level since October last year.

As Trump launches an all-out assault on global trade, the traditional status of US Treasuries as the world's safe haven is increasingly being questioned. The sell-off in government debt resumed this week, even as a solid 30-year bond auction showed that appetite for US debt remains. On Friday, the yield on the 10-year Treasury note rose six basis points, adding to the nine basis-point surge seen Thursday.

In commodities, oil posted its second consecutive weekly loss, while gold extended its rally.

The S&P 500 showed signs of a rebound. For bulls, the primary objective today will be to break above the immediate resistance at $5,356. A successful move above this level would open the path to $5,399, with a further push toward $5,443 strengthening the bullish case.

If downside pressure returns amid declining risk appetite, support is expected near $5,318. A drop below this level could quickly send the index back toward $5,282, with further downside risk extending to $5,226.