Technology stocks plummeted Thursday and the Nasdaq Composite Index dropped 4% on the heels of its record-setting session. The index is headed for its best week since September. CNBC reported.
Markets reversed course, giving up some gains from a monster rally after President Trump announced a 90-day pause on some tariffs and dropped the tariff on most countries to 10% to allow negotiations. However, the White House confirmed Thursday to CNBC that the cumulative tariff rate on China would total 145%.
Apple declined 4%, giving back some of its 15% Wednesday gain that pushed the iPhone maker to its best day since January 1998. Tesla dropped and Meta Platforms dropped about 7%, while Amazon and Nvidia declined at least 5% each. Microsoft and Alphabet dipped by 2% and 4%, respectively.
CNN reported: The US stock market tumbled deeply into the red on Thursday as the White House clarified its plan for a massive 145% tariff on China, escalating a trade war.
The Dow, after rising nearly 3,000 points Wednesday, had a volatile day in the red on Thursday. The blue-chip index fell 1,015 points, or 2.5%, pulling back after tumbling as much as 2,100 points midday.
The S&P 500 fell 3.46% and the Nasdaq Composite slid 4.31%. The S&P was coming off its best day since 2008, and the Nasdaq on Wednesday posted its second-best day gains in history.
The stock market, fresh off its third best day in modern history, is sinking back into reality: Although President Donald Trump paused most of his “reciprocal” tariffs, his other massive import taxes have already inflicted significant damage, and the economy won’t easily recover from the fallout.
New York Post reported: President Trump may have hit the brakes on reciprocal tariffs levied against many of America’s top trading partners, but the duties imposted on China will reach a staggering 145% on certain imports, a White House official confirmed to The Post.
Trump announced Wednesday that his tariff scheme would be put on pause for 90 days after a dozens of countries came forward looking to make a deal — lowering the baseline rate on most foreign imports to just 10% in the meantime.
But the reprieve does not apply to China, which Trump slapped with an eye-popping 125% duty over what he called “a lack of respect” from Beijing. That combined int a 20% “fentanyl tariff” already in place, means some imports will be subject to a total tariff of 145%, CNBC first reported.
Americans buys more from China than any other country in the world world, except Mexico — to the tune of nearly $440 billion in 2024. All kinds of consumer goods come from China — including electronics like iPhone, toys, clothes and shoes.