Stocks suffered sharp losses on Thursday, driven by renewed tariff concerns just one day after the US market posted one of its best performances in years.
The S&P 500 fell nearly 3.5%, while the Nasdaq Composite plummeted 4.3%. The Dow Jones Industrial Average dropped 1,014 points, or 2.5%. The 10-year Treasury yield ended flat at 4.39%, after fluctuating during the day.
The market’s slide followed confirmation from the White House that total US tariffs on China would now reach 145%, including the existing 20% duties. This announcement, which contradicted a previous statement by President Trump on social media, shocked investors and caused stocks to quickly hit session lows.
New York Stock Exchange strategist Eric Criscuolo noted that the selloff indicated persistent uncertainty in the market.
Despite occasional signs of recovery in the afternoon, the volatility left markets under pressure, as tariff headlines continued to dominate investor sentiment.
The market’s dip came after a strong performance on Wednesday, when the S&P 500 saw its largest one-day gain since 2008. On Thursday morning, futures were already down by 1%, despite a lower-than-expected March Consumer Price Index (CPI) report, which showed core inflation at 2.8%. Typically, such a report would encourage a rally, but it failed to offset the impact of tariff news.
Individual stocks saw dramatic reversals. Tesla, which had surged 20% on Wednesday, fell 7.3% on Thursday. Nvidia, up 18% the day before, dropped 5.9%.
Michael Darda, chief economist at Roth Capital Partners, attributed the market’s volatility to “chaotic” public policy decisions.
The new tariffs brought attention to the fact that the US’s overall tariff rate is at its highest in over a century, with the Yale Budget Lab estimating an effective rate of 27%, up from 22.5% after previous tariff announcements.
The tariff news also underscored that the market’s optimism from Wednesday was fueled by a delay in tariff hikes, not their cancellation. With 90 days left in tariff negotiations, uncertainty remains high, and further tariff discussions are expected to weigh heavily on market sentiment.
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