US stock market ends sharply lower on Trump's tariff risks; S&P 500 slumps 3.4%, Nasdaq crashes 4.3%

US stock market tumbled on Thursday amid worries over the economic impact of US President Donald Trump's multi-front tariff war. All three major US stock indexes suffered steep losses as escalating US-China trade war concerns dampened optimism over upbeat economic data and US-Europe trade negotiations.

The Dow Jones Industrial Average plunged 1,014.79 points, or 2.50%, to 39,593.66, while the S&P 500 slumped 188.85 points, or 3.46%, to 5,268.05. The Nasdaq Composite closed 737.66 points, or 4.31%, lower at 16,387.31.

Among the 11 major sectors in the S&P 500, all but consumer staples ended in negative territory, with energy and tech suffering the largest percentage drops, Reuters reported.

Declining issues outnumbered advancers by a 4.81-to-1 ratio on the NYSE. There were 39 new highs and 224 new lows on the NYSE. On the Nasdaq, 867 stocks rose and 3,588 fell as declining issues outnumbered advancers by a 4.14-to-1 ratio.

Meanwhile, on Wednesday, Trump announced a 90-day tariff pause that led to a 9.5% surge in S&P 500, the largest one-day percentage jump since October 2008. The tech-heavy Nasdaq soared 12.2%, notching its second-biggest daily gain on record.

Trump on Wednesday also said he would raise the tariff on Chinese imports, and the White House said a 10% blanket duty on almost all US imports will remain in effect. US tariffs on China now total 145% after the latest hike, the White House told CNBC on Thursday.

Stock Reactions

The so-called Magnificent Seven group of artificial intelligence-related momentum stocks declined between 2.3% and 7.3%. Apple share price dropped 4.24%, Nvidia stock price tanked 5.91%, Advanced Micro Devices shares cracked, while Tesla share price plunged 7.27%.

CarMax slid 17.0% after the used-car retailer missed fourth-quarter profit expectations.

US Dollar, Treasury Yields

The U.S. dollar fell against its major peers on Thursday, hitting a 10-year low against the safe-haven Swiss franc. Against the Swiss franc, the dollar weakened 3.89% to 0.825. The euro was up 2.23%. Against the Japanese yen, the dollar weakened 2.07% to 144.66.

US Inflation

US consumer prices unexpectedly fell in March amid cheaper gasoline and used motor vehicles. The Consumer Price Index (CPI) dipped 0.1% last month, the first drop since May 2020, after gaining 0.2% in February. In the 12 months through March, the CPI advanced 2.4% after rising 2.8% in February.

The yield on 10-year US Treasury notes was last down 1 basis point on the day at 4.386%, while the interest-rate sensitive two-year yield fell 11 basis points to 3.843%.

(With inputs from Reuters)

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