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 S&P 500 sold off 3.46% and closed at 5,268.05, while the Nasdaq Composite slid 4.31% to end at 16,387.31. The Dow Jones Industrial Average dropped 1,014.79 points, or 2.5%, settling at 39,593.66.
Notable decliners included Apple and Tesla, which pulled back 4.2% and 7.3%, respectively. Nvidia lost nearly 6%, while Meta Platforms slipped almost 7%.
Losses accelerated after the White House confirmed to CNBC 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.
“We’ll have to see what happens at that time,” Trump said at a Cabinet meeting.
Here are the tariffs currently in effect:
- 145% duty on all goods from China
- 25% tariffs targeting aluminum, autos and goods from Canada and Mexico not under the United States-Mexico-Canada Agreement
- 10% levy on all other imports
Thursday’s market moves pared back a portion of the gains from Wednesday’s historic surge, in which the S&P 500 soared more than 9% for its third-largest gain in a single day since World War II. The Dow also saw its biggest percentage advance since March 2020, while the Nasdaq scored its biggest one-day gain since January 2001 and second-best day on record.
“Investors have sobered up,” said Melissa Brown, SimCorp managing director of applied research. “Uncertainty is a big issue because the 145% rate could be a different number tomorrow. It’s very hard to call a bottom or a top because things have changed so much in the narrative and investor perceptions.”
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 levies for U.S. goods.
Despite the initial optimism in response to the 90-day reprieve, many on the Street think the market is not yet out of the woods. Even with the delay in some tariffs, the hike on China duties puts the effective tariff rate at a historic high, according to Morgan Stanley.
“Delays help, but do not reduce uncertainty,” Michael Gapen, Morgan Stanley chief U.S. economist, wrote in a Thursday note.
Source: https://www.cnbc.com/2025/04/09/stock-market-today-live-updates.html