The Stock Market Is Having Another Wild Day

Stocks fell Thursday, giving back half 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 reprieve 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 5.3%, while the Nasdaq Composite slid 6.1%. The Dow Jones Industrial Average dropped 1,877 points, or 4.6%.

Leading the declines were Apple and Tesla, which pulled back more than 6% and 10%, respectively. Nvidia lost more than 7%, while Meta Platforms slipped around 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.

Here are the tariffs still in effect:

• 145% duty on all goods from China

• 25% tariffs targeting aluminum, autos, goods from Canada and Mexico not under the United States-Mexico-Canada Agreement

• 10% levy on all other imports

Thursday’s market moves are paring back much of the gains after Wednesday’s historic surge, where 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.

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.

Despite the initial optimism in response to the 90-day reprieve, some on the Street think the market is not yet out of the woods. Even with the delay in some tariffs, 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.