U.S. Stocks Close: Three Major Indices Pull Back Sharply, Tesla Plunges 7% Leading the Decline Among the Seven Giants

On Thursday, April 10, the US stock market overall pulled back, with all three major indices closing with significant declines.

At the close, the Dow Jones Industrial Average fell 2.5% to 39,593.66, the S&P 500 dropped 3.46% to 5,268.05, and the Nasdaq Composite declined 4.31% to 16,387.31.

In the previous trading session, US stocks surged significantly, with the Nasdaq closing up 12.16%, marking the second-largest single-day gain in the index's history. During the session, US President Trump announced that he had authorized a 90-day tariff suspension for countries not taking retaliatory actions.

Following Trump's announcement, risk assets including US stocks collectively rose, but by Thursday, this optimism quickly subsided, with a risk-off tone returning to the mainstream. Safe-haven assets such as the yen, Swiss franc, and gold strengthened noticeably, while risk assets like US stocks gave back some of their gains.

SimCorp executive Melissa Brown stated that investors have sobered up, and uncertainty is a major issue. Brown added that it is currently difficult to determine whether the market has hit bottom or peaked, as both market narratives and investor perceptions have changed significantly.

Former US Treasury Secretary and former US Fed Chair Janet Yellen commented that Trump's economic policies are the "most severe self-inflicted wounds" in a well-functioning economy, and the likelihood of a US recession has increased.

Morgan Stanley's chief US economist Michael Gapen wrote in a recent report that delaying some reciprocal tariffs does help the market but does not reduce uncertainty.

Before the market opened, the US Bureau of Labor Statistics reported that the US CPI rose 2.4% YoY in March, below market expectations, while core CPI increased 2.8% YoY, the smallest rise since March 2021.

Economist Harriet Torry commented that typically, a slowdown in CPI YoY growth would be welcome news, but this time, investors, policymakers, and businesses will find it difficult to overinterpret the March data.

Boston Fed President Collins stated that the US Fed's current stance of keeping rates steady seems to be the best option. Collins also mentioned that tariffs are pushing up US goods prices, which could lead the US Fed to delay interest rate cuts.

Hot Stock Performance

The "Magnificent Seven" all pulled back, with Apple down 4.24%, Microsoft down 2.34%, Nvidia down 5.91%, Amazon down 5.17%, Google C down 3.53%, Meta down 6.74%, and Tesla down 7.27%.

The Philadelphia Semiconductor Index fell 7.97%, with all 30 components closing lower. AMD dropped 8.41%, Broadcom declined 6.94%, Qualcomm fell 6.4%, Arm Holdings slid 5.75%, ASML dipped 5.49%, and TSMC decreased 4.8%.

Among Chinese stocks, the Nasdaq Golden Dragon China Index fell 1.14%.

Hot Chinese stocks were mixed, with Li Auto up 5.25%, GDS Holdings up 4.94%, TAL Education up 3.21%, XPeng Motors up 3.04%, and JD.com up 1.44%.

Alibaba fell 0.57%, New Oriental dropped 0.84%, NIO declined 0.91%, Tencent Music slid 1.19%, Baidu decreased 2.63%, and Pinduoduo plunged 6.16%.

Company News

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[STMicroelectronics Introduces Multiple Cost-Cutting Reform Measures]

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[Novavax's COVID-19 Vaccine Efficacy Questioned]

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[US AI Drug Development Stocks Rise After Hours as FDA Abandons Animal Testing Principle]

US AI drug development stocks rose after hours, with Certara up over 25%, Schrodinger up over 18%, Recursion Pharmaceuticals up over 21%, Absci Corp up over 17%, and Charles River up over 6%. The US Food and Drug Administration (FDA) announced it will gradually abandon animal testing for many drugs, including monoclonal antibodies, in favor of "more effective human-relevant research methods."

[Reagan Airport Incident: Two American Airlines Planes Collide on Runway]

The US Federal Aviation Administration (FAA) stated on the 10th that an American Airlines plane collided with the wingtip of another American Airlines plane while taxiing on the runway at Washington Reagan National Airport. One of the planes was carrying US Congress members, but no injuries were reported. The FAA will investigate the incident. This year, multiple incidents have occurred near Washington Reagan National Airport.