Wall Street’s major indices opened lower on Thursday, giving up some of the previous session’s sharp gains that were driven by U.S. President Donald Trump’s temporary suspension of tariffs on several countries.
The Dow Jones dropped 854.20 points or 2.10% to 39,754.25, the S&P 500 declined 127.67 points or 2.34% to 5,329.13, and the Nasdaq fell 470.55 points or 2.75% to 16,654.42.
The losses came amid a cooler-than-expected inflation reading, which reinforced expectations that the Federal Reserve may proceed with interest rate cuts later this year.
According to the Commerce Department, the consumer price index (CPI) rose 2.4% year-on-year in March, below economists’ forecast of 2.6%. On a monthly basis, inflation slowed by 0.1%. Core CPI, which excludes food and energy, rose 2.8% annually, also below the estimated 3%.
In a separate report, the Labor Department said initial jobless claims stood at 223,000 last week, in line with market expectations.
Most S&P 500 sectors were in the red. Information technology and energy led the losses, falling 3.5% and 3.9%, respectively. Consumer staples was the only sector that posted gains.
Most megacap and growth stocks slid, with Tesla and Nvidia down more than 4% each.
Meanwhile, markets had soared on Wednesday, with the S&P 500 posting a 9.52% gain—its biggest one-day rally since 2008. The Nasdaq jumped 12.16%, its best performance since 2001, and the Dow rose 7.87%.
Despite Wednesday’s surge, the S&P 500 and the Dow remain about 5% below the levels seen before the reciprocal tariffs were announced last week.
The rebound was driven by Trump’s announcement of a 90-day pause on many new reciprocal tariffs. However, tariffs on Chinese imports were raised from 104% to 125%, prompting Beijing to retaliate with 84% duties on U.S. goods.
Adding to the temporary easing of trade tensions, the European Union also delayed counter-tariffs by 90 days, postponing measures that were set to begin on April 15.
Bond markets stabilized following Wednesday’s volatility. The yield on the 10-year U.S. Treasury note slipped to 4.302%, down from recent highs. Traders are now pricing in nearly 90 basis points of rate cuts in 2025, according to LSEG data.
The Dow Jones dropped 854.20 points or 2.10% to 39,754.25, the S&P 500 declined 127.67 points or 2.34% to 5,329.13, and the Nasdaq fell 470.55 points or 2.75% to 16,654.42.
The losses came amid a cooler-than-expected inflation reading, which reinforced expectations that the Federal Reserve may proceed with interest rate cuts later this year.
According to the Commerce Department, the consumer price index (CPI) rose 2.4% year-on-year in March, below economists’ forecast of 2.6%. On a monthly basis, inflation slowed by 0.1%. Core CPI, which excludes food and energy, rose 2.8% annually, also below the estimated 3%.
In a separate report, the Labor Department said initial jobless claims stood at 223,000 last week, in line with market expectations.
Most S&P 500 sectors were in the red. Information technology and energy led the losses, falling 3.5% and 3.9%, respectively. Consumer staples was the only sector that posted gains.
Most megacap and growth stocks slid, with Tesla and Nvidia down more than 4% each.
Meanwhile, markets had soared on Wednesday, with the S&P 500 posting a 9.52% gain—its biggest one-day rally since 2008. The Nasdaq jumped 12.16%, its best performance since 2001, and the Dow rose 7.87%.
Despite Wednesday’s surge, the S&P 500 and the Dow remain about 5% below the levels seen before the reciprocal tariffs were announced last week.
The rebound was driven by Trump’s announcement of a 90-day pause on many new reciprocal tariffs. However, tariffs on Chinese imports were raised from 104% to 125%, prompting Beijing to retaliate with 84% duties on U.S. goods.
Adding to the temporary easing of trade tensions, the European Union also delayed counter-tariffs by 90 days, postponing measures that were set to begin on April 15.
Bond markets stabilized following Wednesday’s volatility. The yield on the 10-year U.S. Treasury note slipped to 4.302%, down from recent highs. Traders are now pricing in nearly 90 basis points of rate cuts in 2025, according to LSEG data.
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