{"id":49217,"date":"2025-04-10T13:02:01","date_gmt":"2025-04-10T18:02:01","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/stock-market-recap-markets-adjust-after-historic-rally-as-cpi-data-shows-inflation-cooling\/49217\/"},"modified":"2025-04-10T13:02:01","modified_gmt":"2025-04-10T18:02:01","slug":"stock-market-recap-markets-adjust-after-historic-rally-as-cpi-data-shows-inflation-cooling","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-recap-markets-adjust-after-historic-rally-as-cpi-data-shows-inflation-cooling\/49217\/","title":{"rendered":"Stock Market Recap: Markets Adjust After Historic Rally as CPI Data Shows Inflation Cooling"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-recap-markets-adjust-after-historic-rally-as-cpi-data-shows-inflation-cooling\/49217\/#Market_Performance_Major_Indexes_Pull_Back_After_Record_Gains\" >Market Performance: Major Indexes Pull Back After Record Gains<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-recap-markets-adjust-after-historic-rally-as-cpi-data-shows-inflation-cooling\/49217\/#Breaking_News_March_CPI_Shows_Unexpected_Decline_in_Inflation\" >Breaking News: March CPI Shows Unexpected Decline in Inflation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-recap-markets-adjust-after-historic-rally-as-cpi-data-shows-inflation-cooling\/49217\/#Tariff_Policy_Developments_90-Day_Pause_with_Exceptions\" >Tariff Policy Developments: 90-Day Pause with Exceptions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-recap-markets-adjust-after-historic-rally-as-cpi-data-shows-inflation-cooling\/49217\/#Notable_Stock_Movements_and_Sector_Performance\" >Notable Stock Movements and Sector Performance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-recap-markets-adjust-after-historic-rally-as-cpi-data-shows-inflation-cooling\/49217\/#Upcoming_Market_Events_to_Watch\" >Upcoming Market Events to Watch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-recap-markets-adjust-after-historic-rally-as-cpi-data-shows-inflation-cooling\/49217\/#Market_Outlook_Navigating_Uncertainty\" >Market Outlook: Navigating Uncertainty<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Market_Performance_Major_Indexes_Pull_Back_After_Record_Gains\"><\/span>Market Performance: Major Indexes Pull Back After Record Gains<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>U.S. stock markets are experiencing a pullback on Thursday, April 10, 2025, following Wednesday&#8217;s historic rally that saw major indexes post some of their best single-day performances in decades. The rally was triggered by President Trump&#8217;s announcement of a 90-day pause on most reciprocal tariffs that had been implemented earlier in the week.<cscitation citation_id=\"task_1__2\"><\/cscitation><\/p>\n<p>As of midday trading, the major indexes are showing the following performance:<\/p>\n<p>&#8211; <b><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=DJI\">DJI<\/a>):<\/b> Trading lower after surging 7.9% (2,962.86 points) on Wednesday to close at 40,608.45, its biggest single-day percentage gain since March 2020.<cscitation citation_id=\"task_2__1\"><\/cscitation><\/p>\n<p>&#8211; <b><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a>:<\/b> Pulling back after soaring 9.5% (474.13 points) yesterday to close at 5,456.90, recording its biggest single-day gain since 2008.<cscitation citation_id=\"task_2__1\"><\/cscitation><\/p>\n<p>&#8211; <b>Nasdaq Composite:<\/b> Declining after rallying 12.2% (1,857.06 points) on Wednesday to finish at 17,124.97, marking its biggest single-day jump since January 2001 and the second-best day in its history.<cscitation citation_id=\"task_2__1\"><\/cscitation><\/p>\n<p>Today&#8217;s market activity reflects investors digesting the implications of yesterday&#8217;s dramatic policy shift and this morning&#8217;s inflation data, with traders weighing the ongoing risks of potential trade disruptions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Breaking_News_March_CPI_Shows_Unexpected_Decline_in_Inflation\"><\/span>Breaking News: March CPI Shows Unexpected Decline in Inflation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Bureau of Labor Statistics released the March Consumer Price Index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=CPI\">CPI<\/a>) this morning, showing inflation cooling more than expected:<\/p>\n<p>&#8211; <b>Headline CPI:<\/b> Decreased 0.1% month-over-month, the first monthly decline in prices in nearly five years. The annual inflation rate fell to 2.4%, down from 2.8% in February and below economists&#8217; expectations of 2.6%.<cscitation citation_id=\"task_4__1\"><\/cscitation><cscitation citation_id=\"task_4__2\"><\/cscitation><\/p>\n<p>&#8211; <b>Core CPI:<\/b> (excluding food and energy) increased just 0.1% for the month and 2.8% year-over-year, the lowest rate for core inflation since March 2021.<cscitation citation_id=\"task_4__1\"><\/cscitation><\/p>\n<p>Key factors driving the decline include:<\/p>\n<p>&#8211; Gasoline prices fell 6.3%, contributing to a 2.4% broader decline in the energy index.<cscitation citation_id=\"task_4__1\"><\/cscitation><br \/>&#8211; Used car prices dropped 0.7%, while new vehicle costs increased just 0.1%.<cscitation citation_id=\"task_4__1\"><\/cscitation><br \/>&#8211; Shelter prices rose only 0.2% in March, with the annual increase slowing to 4%.<cscitation citation_id=\"task_4__1\"><\/cscitation><br \/>&#8211; Airline fares declined 5.3%, and prescription drug prices fell 2%.<cscitation citation_id=\"task_4__2\"><\/cscitation><\/p>\n<p>Economists caution that this improvement in inflation may be temporary, as the impact of Trump&#8217;s tariff policies, particularly the increased 125% tariffs on Chinese goods, has yet to be fully reflected in consumer prices.<cscitation citation_id=\"task_4__2\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tariff_Policy_Developments_90-Day_Pause_with_Exceptions\"><\/span>Tariff Policy Developments: 90-Day Pause with Exceptions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Markets are still adjusting to President Trump&#8217;s surprising policy shift announced Wednesday. Key developments include:<\/p>\n<p>&#8211; A 90-day pause on most of the reciprocal tariffs that had gone into effect at midnight Tuesday.<cscitation citation_id=\"task_1__2\"><\/cscitation><br \/>&#8211; The blanket 10% tariffs on all countries will remain in place during this period.<cscitation citation_id=\"task_2__1\"><\/cscitation><br \/>&#8211; China faces significantly higher tariffs of 125% (up from 104%) after Beijing retaliated with an 84% tariff on U.S. imports.<cscitation citation_id=\"task_2__1\"><\/cscitation><\/p>\n<p>Treasury Secretary Scott Bessent indicated that negotiations will take place during the 90-day pause period.<cscitation citation_id=\"task_2__1\"><\/cscitation> The European Union has paused its first countermeasures against U.S. tariffs, though the bloc was not specifically mentioned in Trump&#8217;s statement.<cscitation citation_id=\"task_4__2\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Notable_Stock_Movements_and_Sector_Performance\"><\/span>Notable Stock Movements and Sector Performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Several major stocks that had been under pressure after the initial tariff announcements led yesterday&#8217;s rally:<\/p>\n<p>&#8211; <b>Apple (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AAPL\">AAPL<\/a>):<\/b> Surged 15.3% on Wednesday<cscitation citation_id=\"task_2__1\"><\/cscitation><br \/>&#8211; <b>NVIDIA (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NVDA\">NVDA<\/a>):<\/b> Soared 18% in the previous session<cscitation citation_id=\"task_2__1\"><\/cscitation><br \/>&#8211; <b>Tesla (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=TSLA\">TSLA<\/a>):<\/b> Rallied 22.7% yesterday<cscitation citation_id=\"task_2__1\"><\/cscitation><\/p>\n<p>Sector performance on Wednesday showed broad-based gains:<br \/>&#8211; Technology Select Sector SPDR (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=XLK\">XLK<\/a>) jumped 13.4%<br \/>&#8211; Consumer Discretionary Select Sector SPDR (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=XLY\">XLY<\/a>) advanced 10.9%<br \/>&#8211; Industrial Select Sector SPDR (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=XLI\">XLI<\/a>) rose 8.9%<br \/>&#8211; Communication Services Select Sector SPDR (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=XLC\">XLC<\/a>) rose 8.8%<cscitation citation_id=\"task_2__1\"><\/cscitation><\/p>\n<p>Today&#8217;s trading is seeing more selective performance as investors reassess positions following the dramatic swings of the past week.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Upcoming_Market_Events_to_Watch\"><\/span>Upcoming Market Events to Watch<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Several key economic events and data releases in the coming days could impact market direction:<\/p>\n<p>&#8211; <b>Friday, April 11:<\/b> U.S. GDP data for February, UK manufacturing production, and German inflation figures<cscitation citation_id=\"task_3__1\"><\/cscitation><\/p>\n<p>&#8211; <b>Next Week:<\/b> Earnings season begins to ramp up, with major financial institutions expected to report results<\/p>\n<p>&#8211; <b>Federal Reserve Policy:<\/b> Minutes from the Fed&#8217;s March meeting released Wednesday revealed officials believe the economy still faces risks of higher inflation and slower growth. Market expectations now point to potential rate cuts beginning in June, with traders pricing in three to four cuts by year-end.<cscitation citation_id=\"task_2__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Market_Outlook_Navigating_Uncertainty\"><\/span>Market Outlook: Navigating Uncertainty<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The market outlook remains clouded by significant policy uncertainty. While the 90-day tariff pause has provided temporary relief, several factors continue to weigh on investor sentiment:<\/p>\n<p>1. The potential inflationary impact of the remaining 10% blanket tariffs and the elevated 125% tariffs on Chinese goods<\/p>\n<p>2. Concerns about global economic growth as trade tensions persist, particularly with China<\/p>\n<p>3. Uncertainty around the Federal Reserve&#8217;s rate path amid conflicting signals on inflation and growth<\/p>\n<p>4. The upcoming U.S. election cycle adding another layer of policy uncertainty<\/p>\n<p>Analysts suggest that market volatility may remain elevated as these factors play out. While today&#8217;s inflation data was encouraging, many economists believe the improvement may be temporary as tariff effects begin to work through the economy in the coming months.<\/p>\n<p>As one analyst noted, &#8220;Today&#8217;s softer than expected CPI release feels backward looking given the large changes to trade policy seen in recent days. Going forward the Fed is likely to face a difficult trade-off as tariff driven price increases start to feed through to the inflation data and activity remains soft.&#8221;<cscitation citation_id=\"task_4__1\"><\/cscitation><\/p>\n<p>Investors should continue monitoring developments in trade negotiations, upcoming economic data, and corporate earnings reports for signals about the market&#8217;s next direction.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market Performance: Major Indexes Pull Back After Record Gains U.S. stock markets are experiencing a pullback on Thursday, April 10, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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