U.S. stocks dropped about two percent at the opening bell on Thursday in a sign markets are skeptical that the damage from President Donald Trump’s tariff chaos is done and dusted.
It comes despite better-than-expected inflation numbers Thursday which showed consumer prices increased 2.4 percent from a year earlier, down from a 2.8 percent rise in February. While it is the lowest increase since September it is still above the Federal Reserve’s 2 percent goal.
The market’s dip comes on the heels of Trump taking a victory lap Wednesday afternoon after he said there would be a 90-day pause on most global tariffs—an announcement which spurred a monster rally before closing.
Despite that rally, however, both the Dow Jones Industrial Average and the S&P 500 remain down about one percent since Trump rolled out his “Liberation Day” tariffs on April 2.
While the White House was quick to trumpet the inflation report, saying “America is back‚ but inflation is not” economists said the data wasn’t useful because it offered only a view of the past while the U.S. braces for a trade war with China.
“Trump blinks,” UBS strategist Bhanu Baweja said about the president’s decision on tariffs, “but the damage isn’t all undone.”
This is a developing story that will be updated.
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