NEW YORK — Not even a double-shot of good news on the U.S. economy seems to be enough to stop Wall Street’s bleeding. Stocks fell Thursday after President Donald Trump upped the stakes in his trade war by threatening huge taxes on European wines and alcohol.

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.

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.