After the announcement of the 90-day reciprocal tariff moratorium policy by the Donald Trump administration, the New York Stock Exchange experienced an unprecedented surge, but it began to decline the very next day, on the 10th.
On this day at 10:30 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average recorded a drop of 900.67 points (2.22%) to 39,707.78.
The benchmark Standard & Poor's (S&P) 500 Index fell by 146.24 points (2.68%) to 5,310.66, while the tech-focused Nasdaq Composite Index dropped by 557.09 points (3.25%) to 16,578.88.
The three major indexes closed with record gains the previous day. After Trump announced the '90-day grace period' for 75 countries excluding China just half a day after the reciprocal tariff went into effect, the market reacted positively.
The Nasdaq index's increase of 12.16% was the largest in 24 years, since January 2001, marking the second largest ever. The S&P 500 index's increase of 9.52% was the largest since 2008, and the Dow's increase of 7.78% was the highest since March 2020. Trading volume also reached a record high of 30 billion transactions on Wall Street.
The United States imposed a 145% tariff in response to China's counteraction against the reciprocal tariff, while China began to impose an 84% retaliatory tariff on U.S. products. However, investors noted that Trump seemed to be mindful of market reactions, leading them to express their pent-up risk appetite.
The effects did not last long. While the Nasdaq index escaped the bear market, the three major indexes remain in a correction phase.
According to the U.S. Department of Labor on this day, the Consumer Price Index (CPI) for March fell by 0.1% compared to the previous month. This is the lowest level in five years since May 2020 (0.1%↓). The year-over-year increase rate of 2.4% also fell short of market expectations (2.6%↑).
The core CPI rose by 0.1% compared to the previous month and by 2.8% compared to the same month last year. This also fell short of market expectations (0.3%↑·3.0%↑).
The large tech stock group 'Magnificent 7' (M7) saw all seven stocks jump 10-22% the previous day, but they opened the session with a decline.
Apple soared by the largest margin since Steve Jobs was CEO in 1998, increasing by 15.33%, before retreating more than 3%. It has regained its position as the top company by market capitalization.
Nvidia, which surged 18.72%, the largest since its listing, fell by more than 5%, while Meta (the parent company of Facebook) decreased by more than 4%, Amazon by more than 3%, and Microsoft and Alphabet (the parent company of Google) each fell more than 2%.