Stocks fell sharply on Thursday as tariff headlines again weighed on markets just a day after the US stock market enjoyed one of its best days on record. 

The S&P 500 (GSPC) dropped almost 3.5%, while the tech-heavy Nasdaq Composite (IXIC) tumbled 4.3%. The Dow Jones Industrial Average (^DJI) fell 1,014 points, or 2.5%. The 10-year Treasury yield (^TNX), in high focus amid bond market whiplash and its role in Trump's decision to reverse sweeping reciprocal tariffs, ended the day flat around 4.39%.

On Thursday, the White House confirmed total tariffs on China will now be 145% when accounting for the previous 20% duties already in place. The news surprised some investors, as President Trump had posted on Truth Social on Wednesday that the tariff rate charged to China would be 125%.

Stocks quickly hit session lows following these headlines. 

"The consistent move lower today is showing a large shadow of uncertainty remains," New York Stock Exchange market strategist Eric Criscuolo wrote in a mid-day trading update on Thursday afternoon.

Volatility in afternoon trade offered occasional signs of a recovery. But markets closing off session lows is cold comfort for a market that continues to be whipsawed — and pressured — by relentless tariff headlines.  

After a wild market party on Wednesday that saw the S&P 500 enjoy its largest one day pop since 2008, stocks woke up a little groggy on Thursday. 

Futures tied to the major indexes were lower by 1% headed into the release of the March Consumer Price Index (CPI) at 8:30 a.m. 

That report showed "core" prices, which exclude the volatile food and energy categories, increased 2.8% in March, their lowest annual increase in four years. The print came in significantly lower than Wall Street's forecast for a 3% increase. Since the Federal Reserve's fight against inflation began, a better-than-expected inflation reading has typically led to a rally in stocks.

Not in this market. 

Stocks started selling off at the open with losses only extending as the White House's confirmation that the US tariffs on China are now at 145%. 

In individual stocks, Wednesday's biggest winners became some of Thursday's biggest losers. Tesla (TSLA) which rallied over 20% on Wednesday, fell 7.3% Thursday. After soaring 18% the day prior, Nvidia (NVDA) fell 5.9% on Thursday. 

"Financial markets are being whipsawed and that's due to public policy being chaotic," Roth Capital Partners chief economist and macro strategist Michael Darda told Yahoo Finance. 

The latest tariff headlines highlighted two realities about the current market moment. 

For one, the overall tariff rate is still at its highest level in more than a century. The Yale Budget Lab now estimates the US effective tariff rate is 27%. After Trump's "Liberation Day" tariff announcements, the Yale Budget Lab had estimated the effective US tariff rate was 22.5%.

The announcement also reminded investors that Wednesday's celebration was over a "delay" of tariffs. 

Exactly what happens over the next 90 days remains to be seen, but tariffs disappearing from the discussion appears unlikely.

As Brent Schutte, Northwestern Mutual Wealth Management Company's chief investment officer, told Yahoo Finance on Thursday, "There's more uncertainty as we negotiate and figure out what actually happens towards the end of the next 90 days."

Michael M. Santiago via Getty Images

Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.

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