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Stocks fell Thursday, giving back some of the gains from the historic rally seen in the previous session after President Donald Trump announced a 90-day reprieve on some of his “reciprocal” tariffs.
Investors worried that even with the short pause on some of the duties, economic activity will be slowed by Trump’s singling out of China with a much higher rate.
The Dow Jones Industrials reversed some of Wednesday’s incredible gains, losing 1,014.79 points, or 2.5%, to wind up Thursday at 39,593.66
The S&P 500 sank 188.85 points, or 3.5%, to 5,268.05
The NASDAQ lost 737.66 points, or 4.3% to 16,387.31
Losses accelerated after the White House confirmed on Thursday that the cumulative tariff rate on China would actually total 145%. This consists of the new 125% duty on goods, on top of the 20% rate levied in response to the fentanyl crisis.
Nonetheless, Trump said later in the afternoon that he is not ruling out an extension to the tariff pause.
The rally took off after Trump announced a temporary drop in tariff rates for most countries to 10% for 90 days. Canada and Mexico won’t be subjected to an additional 10% duty, however. The European Union announced Thursday a similar 90-day pause on U.S. goods.
The latest consumer price index report showed inflation eased to 2.4% year-over-year in March, lower than the Dow Jones consensus estimate of a 2.6% rise.
Prices for the 10-year Treasury tumbled in the final hour, pushing yields back up to 4.41% from Wednesday’s 4.34%. Treasury prices and yields move in opposite directions.
Oil prices slid $2.10 to $60.25 U.S. a barrel.
Prices for gold spiked $112.20 to $3,157.50 U.S.