04:33 PM EDT, 04/10/2025 (MT Newswires) -- US benchmark equity indexes sank Thursday, partially reversing a rally seen in the previous session.

The Nasdaq Composite tumbled 4.3% to 16,387.3, while the S&P 500 slid 3.5% to 5,268.1. The Dow Jones Industrial Average lost 2.5% to 39,593.7. Barring consumer staples, all sectors posted losses, led by energy.

The three equity indexes soared Wednesday, with the Dow and the S&P 500 snapping a four-day losing streak, after President Donald Trump paused certain tariffs for non-retaliating countries.

Trump, however, increased duties on China following countermeasures by Beijing. The tariff rate on Chinese imports now effectively amounts to 145%, CNBC reported Thursday, citing a White House official. Separately, CNBC reported that Trump declined to rule out the possibility of extending his tariff pause.

The tariff delay reduces immediate downside risks to the US economy, but prolonged uncertainty is expected to further weaken consumer and business spending, Morgan Stanley said.

The European Union will put a 90-day pause on its counter tariffs against the US as it wants to "give negotiations a chance," European Commission President Ursula von der Leyen said.

Higher-than-projected tariffs would "very likely" increase inflation and unemployment in the US, Federal Reserve Bank of Dallas President Lorie Logan said. "To sustainably achieve both of our dual-mandate goals, it will be important to keep any tariff-related price increases from fostering more persistent inflation."

Separately, Kansas City Fed President Jeff Schmid said the current environment has become "considerably more complicated," with the recent tariff announcements lifting macro uncertainty. "With renewed price pressures likely, I am not willing to take any chances when it comes to maintaining the Fed's credibility on inflation."

US Treasury yields were mixed Thursday, with the two-year rate falling 9.5 basis points to 3.85% and the 10-year rate adding 1.1 basis points to 4.41%.

West Texas Intermediate crude oil slid 3.3% to $60.29 a barrel Thursday. "Oil tumbled on fears of a deepening US-China trade war and a possible recession," D.A. Davidson said.

In company news, CarMax ( KMX ) shares sank 17%, the second-worst performer on the S&P 500, after the used-car retailer's fiscal fourth-quarter earnings missed Wall Street expectations. The company suspended the timeframes related to its long-term objectives due to macro uncertainties.

China will lower the number of US films allowed to enter the Asian country in response to the escalating trade tensions between the two nations, China's National Film Administration said. Warner Bros. Discovery ( WBD ) shares slumped nearly 13%, among the steepest declines on the S&P 500, while Walt Disney ( DIS ) declined 6.8%.

Verizon Communications ( VZ ) shares rose 1.7%, the second-best Dow performer, as Deutsche Bank adjusted its price target on the stock to $46 from $45.

In other economic news, US consumer inflation unexpectedly turned negative last month in what was its first monthly decline since May 2020, official data showed.

"The March consumer price index brought encouraging news on inflation, but this reflects what could've been, rather than what is ahead," Oxford Economics said. "Energy was a sizable drag on the headline CPI in March and will be again in April, but the boost to inflation from tariffs is coming."

The official producer price report for March is scheduled to be released Friday.

Gold rose 3.7% to $3,193.90 per troy ounce, while silver gained 2.5% to $31.16 per ounce.