FX.co ★ US Stocks Lower as Tariff-Pause Rally Fades

U.S. stocks declined on Thursday, with the S&P 500 dropping 2.3%, the Nasdaq 100 down 2.7%, and the Dow Jones Industrial Average decreasing by approximately 670 points. This downturn follows a significant rally on Wednesday, prompted by President Trump's announcement of a 90-day suspension on tariffs for most U.S. trade partners, excluding China, to facilitate negotiations. Tariffs on Chinese imports, however, remain at 125%. Despite the suspension, market volatility is anticipated to continue as investors remain wary amid ongoing uncertainties and evaluate the broader economic implications, particularly concerning the U.S. economy. On the data side, all primary Consumer Price Index (CPI) components were weaker than expected. Although there have been no positive surprises in the inflation data, the effects of recently imposed tariffs are anticipated to become more apparent in the upcoming months. In a separate report, initial jobless claims were consistent with figures from previous weeks. The technology and energy sectors faced the most significant declines.