Major stock indexes and the U.S. dollar dropped on Thursday, with the S&P 500 ending down more than 3% as investors remained skittish, a day after U.S. President Donald Trump's move to temporarily lower tariffs on many countries caused a massive relief rally.

Investors fled to safe havens, with gold prices jumping nearly 3% to an all-time high and the dollar hitting a 10-year low against the Swiss franc.

Market Snapshot

The Dow Jones Industrial Average fell 1,014.79 points, or 2.50%, to 39,593.66, the S&P 500 fell 188.85 points, or 3.46%, to 5,268.05 and the Nasdaq Composite fell 737.66 points, or 4.31%, to 16,387.31.

Market Movers

Shares of NVIDIA fell 5.9% to $107.57 after the maker of artificial-intelligence chips finished Wednesday up 19% and gained $439.9 billion in market cap, the largest one-day market cap gain for any company on record, according to Dow Jones Market Data. A report from NPR said the White House has paused plans to put additional restrictions on sales of Nvidia's H20 artificial-intelligence chips after CEO Jensen Huang attended a dinner hosted by Trump and promised more investment in U.S.-based AI data centers. Morgan Stanley analyst Joseph Moore kept Nvidia as a top pick, reiterating his Overweight rating and price target of $162.

Fellow chip maker Advanced Micro Devices was down 8.4%. It closed Wednesday with a gain of nearly 24%, the most the shares have risen in a session since April 22, 2016.

Apple was down 4.2%. Shares of the iPhone maker jumped 15% on Wednesday after Trump put a pause on most tariffs but increased China's tariff rate to 125%. Apple makes most of its iPhones in China through contract manufacturer Foxconn, meaning that prices on everything from iPhones to MacBooks would rise if the levies were to stick.

Apple also became the world's most valuable public company again on Wednesday, leapfrogging over Microsoft, which had taken the crown from Apple the day before. Apple's closing market cap value on Wednesday was $2.987 trillion, topping Microsoft's $2.903 trillion, according to Dow Jones Market Data.

Microsoft rose 10% on Wednesday and was down 2.3% on Thursday at $381.35. Wedbush analyst Dan Ives cut his price target on Microsoft to $475 from $550. He maintained an Outperform rating on the stock but said "unfortunately the tariff 'game of poker' is adding a high level of near-term uncertainty to any company with supply chains/cost inputs around China and those tariffs remain very much on the table."

Tesla Motors declined 7.3% to $252.40 after skyrocketing 23% on Wednesday. It was the electric-vehicle maker's largest daily percentage increase since May 9, 2013, when it rose 24.4%. Trump's pause on tariffs was good news to CEO Elon Musk, who isn't a fan of broad tariffs and went so far as to say over the weekend that the U.S. and Europe shouldn't impose tariffs on one another. Analysts at Goldman Sachs Tesla reduced their Tesla price target to $260 from $275 and remained Neutral on the stock.

General Motors fell 4.4% and Ford Motor was down 3.8% after price targets on shares of the auto makers were cut at Goldman Sachs. Ford was downgraded to Neutral from Buy and the price target was reduced to $9 from $11. The firm kept its Buy rating on GM stock but cut the price target to $63 from $73. The companies still face 25% import tariffs on new vehicle imports and, eventually, car part imports, according to the White House. Jeep maker Stellantis tumbled nearly 12%.

U.S. Steel was down 9.5% after Trump said the steel maker should remain an American company and not be sold to Japan's Nippon Steel. Trump had said earlier this week that his administration would conduct a new review of U.S. Steel's $14 billion combination with Nippon Steel. But Wednesday the president said, "U.S. Steel is a very special company, we don't want it to go to Japan or any other place."

CarMax reported fourth-quarter earnings of 58 cents a share on sales of $6 billion. Analysts were calling for profit of 66 cents on sales of about $6 billion. CarMax said used-unit sales in comparable stores during the quarter rose 5.1%. Shares of the company, which sells used vehicles, sank 17%. Competitor Carvana was down 7.6%.

Warner Bros. Discovery fell 12.5% and Walt Disney declined 6.8%. China said it would reduce the number of U.S. movies it imports amid the escalating trade war between Beijing and Washington.

Trump Media & Technology fell 7.3%. Shares of the company, the parent of Trump's Truth Social platform, soared 22% on Wednesday.

Market News

Google in Spotlight as Tech Giant Signs Deal with US Gov't to Cut Software Prices

Alphabet was in the spotlight on Thursday as the tech giant signed a deal with the U.S. government to cut the prices of its business software.

The U.S. General Services Administration said it reached a deal with the Mountain View, Calif.-based Google to temporarily cut the price of its Workspace software — which includes Gmail, Contacts, Calendar, Meet and Chat — by 71% for every federal agency, regardless of how large the deal is.

The discounts are effective until the end of the federal year, Sept. 30. The deal comes at a time when the Trump administration is seeking to slash government expenses.

Trump’s 90-Day Tariff Pause Is Not as Helpful as It Sounds, Citi Says

Wall Street roared back to life after President Trump announced a 90-day suspension of tariffs affecting more than 75 countries—news that resulted in a historic day of gains for markets.

But, despite the initial optimism, not everyone is convinced that the economic turbulence is over.

Citi Research cautioned that the reprieve might offer only short-term relief. “Pausing reciprocal tariffs excluding China does not mean the US economy has avoided a slowdown in growth and rise in inflation,” Citi said in a recent note to clients.