The Nasdaq bottomed at around 12:30 when it was down more than 6%, but it has now rebounded strongly. As of 2:30 p.m. ET, the index is down 3.6%.
Yesterday’s gains have now been cut in half, the Nasdaq Composite is down almost 6% shortly after noon. The Dow is down about 1,700 points, or 4%.
Yesterday’s massive gains are being chipped away at as the market day carries on. The Nasdaq is now down more than 4% as of 11:20 a.m. ET.
One factor that’s not helping: the White House confirmed that the Chinese tariff rate is now 145%. Rates that high continue to raise the probability of a protracted trade war.
Economic Policy advisor Kevin Hassett said this morning that the White House has deal offers on the table from 15 countries. Any dealmaking would likely be positive for the market as it would continue to remove uncertainty, but so far markets haven’t reacted much to the news.
The Nasdaq Composite is now down 3.72% as of 10:20 a.m. ET.
With the Nasdaq down about 2.8%, what stocks are down the most?
In general, the answer is whatever stocks saw the biggest gains yesterday. Carmax (NYSE: KMX) is down 15% following an earnings announcement.
Beyond that many semiconductor stocks that saw huge rallies yesterday are also down. Micron (Nasdaq: MU) is down 7.42% after gaining nearly 20% yesterday, as a notable example.
Markets have opened for the day and are down sharply.
The Nasdaq Composite is down 2.8%, S&P 500 down 2.21%, and the Dow Jones has dropped 1.56%. That’s in sharp contrast to last night when Futures were little changed.
CPI data was just released by the Bureau of Labor Statistics.
They found that the Consumer Price Index (CPI) rose 2.4% in March, a drop from the prior month. The drop was primarily driven by food and energy prices. We’ll have more analysis on the details but lower inflation rates should help trim premarket losses.
One of the big factors in Trump’s u-turn on tariffs was surging yields in the 10-Year Treasury market. This morning yields stand at about 4.31%.
That’s about 20 basis points lower than yields peaked at yesterday before Trump’s Truth Social post on the tariff pause.
Live coverage has ended. The full story is below.
Yesterday saw one of the most dramatic surges in stock market history. After most indexes opened the day down, a 1:18 p.m. ET post by Donald Trump on Truth Social sent stocks soaring. Eventually, the Nasdaq Composite closed up 12.16%, leaving it within striking distance of where the index traded before Trump announced his reciprocal tariffs on April 2nd.
Yet, the optimism that swept the markets yesterday is taking a pause this morning. Let’s look at where major indexes stand as of 8:25 a.m. ET:
Here are some of the morning’s biggest stories.
Plenty of reporting is now emerging to detail the thought process behind Trump’s sudden change of direction on tariffs. A few factors seem to be in play:
Yet, despite the 90-day pause on tariffs that were announced yesterday, plenty of risks remain.
For example, tariff rates remain extremely elevated relative to historic levels. Not only does China now face tariffs far in excess of 100%, but countries that saw a pause on reciprocal tariffs still face a 10% tariff during this negotiation window.
In addition, Trump wants to be part of individual negotiations with countries. Its like volatility in the coming months could be driven be negotiation announcements. For example, a deal with Japan would likely send markets higher while any reports that negotiations are reaching a stalemate would lead to further sell-offs.
Given the above, its not surprising to see markets take a breather after yesterday’s furious rally. In general, stocks that saw the biggest gains yesterday will see losses in excess of the general market today.
Contact [email protected] for any questions or corrections.
Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.
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