US Stocks Lower as Tariff-Pause Rally Fades
US stocks were lower on Thursday, with the S&P 500 falling 2.3%, the Nasdaq 100 losing 2.7%, and the Dow Jones plunging roughly 670 points.
The pullback comes after Wednesday’s historic rally, spurred by President Trump’s announcement of a 90-day pause on tariffs for most US trade partners - excluding China - to allow for negotiations. Tariffs on Chinese goods, however, will remain at 125%. Despite the pause, market volatility is expected to persist as investors stay cautious amid ongoing uncertainty and assess the broader economic fallout, particularly for the US economy.
Meanwhile, on the data front, all key CPI components came in softer than anticipated. While there are still no upside surprises in the inflation data, the full impact of recently imposed tariffs is expected to filter through in the coming months.
Separately, initial jobless claims came in line with figures from the previous weeks. Tech and energy sectors were the biggest losers.
Source: Trading Economics
