Wall Street ended sharply lower on Thursday and the S&P 500 confirmed it is in a correction after cool inflation data was overshadowed by fears that the escalating, hydra-headed tariff war being waged by the United States against its biggest trading partner could reignite inflation and tip the economy into recession.

Wall Street’s sell-off hit a new low Thursday after President Donald Trump’s escalating trade war dragged the S&P 500 more than 10 percent below its record, which was set just last month.

In the bond market, Treasury yields climbed to regain more of their losses from recent months sparked by worries about the U.S. economy’s strength. The 10-year Treasury rose to 4.30% from 4.28% late Tuesday and from 4.16% at the start of last week.