Wall Street's main indexes experienced significant declines on Thursday due to concerns about the impact of high tariffs on the global economy. This comes after a day of historic gains when U.S. President Donald Trump temporarily reduced tariffs on some countries. The selling pressure intensified following the implementation of new levies on most trading partners, although Trump later announced a 90-day pause on many reciprocal tariffs. However, tariffs on Chinese imports were raised to 125% from 104%, resulting in a sharp decline in the S&P 500 and Nasdaq indexes.

Adam Hetts, the Global Head of Multi-Asset at Janus Henderson in Denver, expressed worries about the potential negative scenarios involving tariffs on autos, counter tariffs, and trade tensions with China and Europe. He highlighted the increasing risk of a recession leading to a sell-off in the market. Art Hogan, Chief Market Strategist at B Riley Wealth in New York, emphasized that despite some positive news, uncertainties remain with the recent escalation in tariffs, particularly with China.

Marc Chandler, Chief Market Strategist at Bannockburn Global Forex in New York, criticized viewing the world as a zero-sum game and stressed that it was unhelpful. He highlighted the uncertainties causing a cooling effect in the market and pointed out the need for a higher U.S. interest rate premium to sustain the strength of the dollar. Sameer Samana, Head of Global Equities and Real Assets at Wells Fargo Investment Institute in Charlotte, North Carolina, did not provide any comments.