The New York stock market, which had surged due to President Donald Trump's reciprocal tariff 90-day deferment measures, turned to a sharp decline within a day. This was prompted by the resurgence of U.S.-China trade tensions, raising concerns about an economic recession.
On the 10th (local time), the Dow Jones Industrial Average closed at 39,593.66, down 1,014.79 points (–2.50%) from the previous session. The Standard & Poor's (S&P) 500 index recorded a decrease of 188.85 points (–3.46%) at 5,268.05, while the tech-heavy Nasdaq index fell 737.66 points (–4.31%) to finish at 16,387.31.
The previous day, after President Trump announced a 90-day deferment of reciprocal tariffs on countries excluding China, the New York stock market recorded a historic surge, but within a day, it gave back a substantial portion of those gains. The Nasdaq index had surged 12.16% the previous day, marking the second-largest daily increase in history.
The decisive factor that worsened investor sentiment was the confirmation that the actual tariff rate imposed by the Trump administration on Chinese imports reaches 145%. In addition to the previously announced 125%, an additional 20% was imposed under the guise of combating the synthetic drug fentanyl, increasing the total.
The consumer price index (CPI) increase for March announced that day was 2.4% year-on-year, falling short of market expectations. However, this was insufficient to quell concerns about potential inflation spikes and economic slowdown caused by trade conflicts.
All sectors declined, particularly with significant drops in technology and energy sectors. Tesla fell 7.22%, Nvidia dropped 5.91%, and major companies like Apple (–4.23%), Meta (–6.74%), and Amazon (–5.17%) also saw substantial declines. With oil prices falling again, energy giants like ExxonMobil (–5.55%) and Chevron (–7.57%) could not escape the downward trend.
Michael Gapen, chief economist at Morgan Stanley, noted, "The tariff deferment provided temporary relief to the market, but it did not alleviate overall uncertainty."