CNBC
Hakyung Kim, Sean Conlon
Stocks fell Thursday, giving back almost half of the gains from the historic rally seen in the previous session after President Donald Trump announced a 90-day reprieve on some of his “reciprocal” tariffs. Investors worried that even with the short reprieve on some of the duties, economic activity will be slowed by Trump’s singling out of China with a much higher rate.
Losses accelerated after the White House confirmed to CNBC on Thursday that the cumulative tariff rate on China would actually total 145%. This consists of the new 125% duty on goods, on top of the 20% rate levied in response to the fentanyl crisis.
Here are the tariffs still in effect:
- 145% duty on all goods from China
- 25% tariffs targeting aluminum, autos, goods from Canada and Mexico not under the United States-Mexico-Canada Agreement
- 10% levy on all other imports
Thursday’s market moves are paring back much of the gains after Wednesday’s historic surge, where the S&P 500 soared more than 9% for its third-largest gain in a single day since World War II. The Dow also saw its biggest percentage advance since March 2020, while the Nasdaq scored its biggest one-day gain since January 2001 and second-best day on record.
The rally took off after Trump announced a temporary drop in tariff rates for most countries to 10% for 90 days. Canada and Mexico won’t be subjected to an additional 10% duty, however. The European Union announced Thursday a similar 90-day pause on U.S. goods.
Despite the initial optimism in response to the 90-day reprieve, some on the Street think the market is not yet out of the woods. Even with the delay in some tariffs, hike on China duties puts the effective tariff rate at a historic high, according to Morgan Stanley.
“Delays help, but do not reduce uncertainty,” Michael Gapen, Morgan Stanley chief U.S. economist, wrote in a Thursday note.
Stocks making the biggest midday moves: Capri, Janover and more
These are the stocks moving the most in midday trading:
- Capri Holdings — Shares fell 8% during midday trading after Prada agreed to buy Versace from Capri for $1.375 billion, which includes its debt.
- Janover — Shares surged more than 55% after the software firm completed its first purchase of the Solana token.
- Harley-Davidson — The motorcycle stock dropped 12% after the company disclosed that board member Jared Dourdeville resigned.
Apple shares fall more than 6% as tariff concerns persist
Apple shares lost about 6.5% in midday trading amid Thursday’s broader market sell-off, continuing the stock’s series of hefty declines. The iPhone maker ended the previous session about 5% lower, giving up gains after the stock had earlier surged more than 15% — at one point notching its best day since 1998 after the Trump administration announced a 90-day tarriff pause on several U.S. trading partners. Apple shares have plunged more than 18% over the past month, and are down nearly 26% this year.
The company stands to be one of the most affected stocks by an intensifying U.S.-China trade war, as the company manufactures the majority of its products in China. President Donald Trump’s reciprocal tariffs could increase the price of Apple’s iPhone 16 Pro Max by as much as $350 in the U.S., UBS analysts have estimated.
Nvidia tumbles 8%
Nvidia shares tumbled 8%, as the broader market sold off on an escalating trade war with China. The slide comes after President Donald Trump hiked tariffs on Beijing to 145%, from 125%. Nvidia is the third-largest stock in the market cap-weighted S&P 500, behind Apple and Microsoft.
Vix spikes as sell off resumes
THE CBOE Volatility Index (VIX), Wall Street’s fear gauge, jumped above 50 on Thursday as stocks gave back their gains from a day earlier. The Vix jumped above 50 on Thursday. The Vix was last at 52.91 at 12:30 p.m. ET. The spike in volatility comes as stocks began selling off and Treasury yields slipped.
Dollar index weakens 1.8%
The dollar index, which measures the greenback against a basket of currencies, fell 1.8% Thursday. Traders flocked to the safe-haven yen, which pressured the dollar lower at 144.34 yen. The euro also strengthened more than 2% versus the greenback at 1.12. Week to date, the dollar index has depreciated around 2%.
Bank stocks see outsized losses
Bank stocks saw especially steep drops amid the market pullback on Thursday. The SPDR S&P Bank ETF (KBE) slid more than 4%, as did the SPDR S&P Regional Banking ETF (KRE). By comparison, the S&P 500 dropped 2.5%.
The SPDR S&P Bank ETF (KBE), 1-day
Western Alliance Bancorporation was the worst-performing bank name, sinking more than 7%. Webster Financial and Voya Financial followed, with each tumbling more than 6%.
- Goldman Sachs
- , JPMorgan
- , Wells Fargo
- , Morgan Stanley
- and Citigroup
also all dropped in the session.
Energy sector hardest hit as oil tumbles
Energy stocks are the hardest-hit sector in the S&P 500, falling more than 5% as oil keeps selling off on uncertainty over Trump’s trade war.
Occidental Petroleum and Devon Energy tumbled more than 6%. Oil majors Exxonand Chevron fell about 2%. Refiner Phillips 66 was down nearly 4%.
U.S. crude oil has fallen more than 4%, tumbling back below $60 per barrel. The U.S. benchmark has given up most of the gains from Wednesday’s relief rally on Trump’s decision to pause higher tariffs on most countries.
Traders have shifted focus to the escalating U.S.-China trade war after Trump hiked rates on the world’s largest crude importer to an eye-watering 145%.
U.S. crude oil falls back below $60 after relief rally
CLOSE CITY, TEXAS - APRIL 09: An oil pumpjack is seen in a field on April 09, 2025 in Close City, Texas. U.S. oil prices have fallen nearly 2% and are more than 15% lower than last week when U.S. President Donald Trump announced new tariffs on imports, raising concerns on the effect they'll have on the global economic outlook. (Photo by Brandon Bell/Getty Images)
An oil pump jack is seen in a field in Close City, Texas, on April 9, 2025.
U.S. crude oil prices tumbled back below $60 per barrel, after a sharp rally in the previous session on Trump’s decision to pause higher tariffs on most U.S. trading partners.
The U.S. benchmark was down $3.01, or 4.83%, to $59.34 per barrel, while global benchmark Brent traded lower by $3.03, or 4.63%, to $62.45.
West Texas Intermediate gave up the gains from Wednesday’s relief rally as traders shift focus to the escalating trade war between the U.S. and China. Trump has hiked tariff rates on China, the world’s largest crude importer, to an eye-watering 125%.
Hardly any individual investors are neutral on stocks anymore, AAII survey says
Mostly everyone is either bearish or bullish and hardly anybody’s neutral in their outlook on stocks these days.
Neutral sentiment toward stocks looking out over the next six months slumped to 12.5%, the smallest percentage since the aftermath of the Global Financial Crisis in May 2009, according to the latest weekly survey from the American Association of Individual Investors, which captured at least some small part of the reaction to Trump on Wednesday suspending most of his planned tariff increases on major trading partners, apart from China.
Historically, almost a third, or 31.5%, of investors describe themselves as neutral in any given week.
Individual investors grew a little more bullish and a little less bearish in the latest week through Wednesday. Bullish views toward stocks over the next six months rose to 28.5% from 21.8% last week (the historical average is 37.5%), while bearish opinion eased to 58.9% from 61.9% (the historic average is 31%).
This week’s 16-year high in neutral sentiment echoed last week’s 16-year high in bearish opinion among Main Street investors, when pessimism also reached its highest since 2009 and was the third-highest reading ever in the history of the survey, which dates from the 1980s.
No comments:
Post a Comment