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CarMax ( KMX ) falls as Q4 profit misses estimates

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March CPI at 2.4% YoY vs 2.6% estimate

(Updates to market close)

By Stephen Culp

NEW YORK, April 10 (Reuters) - Wall Street stocks

tumbled on Thursday on mounting worries over the economic impact

of U.S. President Donald Trump's multi-front tariff war.

All three major U.S. stock indexes suffered steep losses,

forfeiting much of the previous session's gains as growing

concerns over the escalating Washington-Beijing trade face-off

dampened optimism over upbeat economic data and U.S.-Europe

trade negotiations.

After Trump announced a 90-day tariff reprieve on Wednesday,

the S&P 500 surged 9.5%, the largest one-day percentage jump

since October 2008. The tech-heavy Nasdaq soared 12.2%, notching

its second-biggest daily gain on record.

Following the whipsaw of Wednesday's bounce and Thursday's

selloff, the S&P 500 remained well below levels before the

reciprocal tariffs were announced last week.

"Investors are still uncomfortable with it, because they

don't know what the end game is," said Paul Nolte, senior wealth

advisor at Murphy & Sylvest in Elmhurst, Illinois. "I think what

we're seeing, still, is investor concern about tariffs and that

is pretty much front and center for everything."

The Labor Department's Consumer Price Index report showed

the prices consumers pay for a basket of goods unexpectedly

edged lower in March, with core price growth cooling down 2.8%

year-on-year, coming within one percentage point of the Federal

Reserve's 2% inflation target.

But the Fed's path forward, in light of ongoing trade

negotiations, is less clear.

Fed Governor Michelle Bowman said on Thursday that while the

U.S. economy remains strong, the effects of Trump's trade

policies are unclear, while Chicago Fed President Austan

Goolsbee said rate cuts could resume once the uncertainties

surrounding trade policy is resolved.

In response to Trump's 90-day tariff pause, the European

Union will delay retaliatory levies on American goods as

countries within the bloc scramble to reach trade deals with

Washington, said European Commission chief Ursula von der Leyen.

But the trade war with Beijing persists, with China vowing

to "follow through to the end" if the U.S. does not let up.

The CBOE Market Volatility Index, often called the

"fear index," remained elevated.

"It's hard for investors to feel comfortable about buying

stocks with volatility so high," Nolte added.

According to preliminary data, the S&P 500

lost 189.79 points, or 3.45%, to end at 5,267.11 points,

while the Nasdaq Composite lost 737.66 points, or 4.31%,

to 16,387.31. The Dow Jones Industrial Average

fell 1,029.51 points, or 2.54%, to 39,578.94.

Big Tech came under pressure once again, with each of the

so-called Magnificent Seven group of artificial

intelligence-related momentum ending with steep losses.

CarMax ( KMX ) slid after the used-car retailer missed

fourth-quarter profit expectations.

First-quarter earnings season kicks off on Friday with big

banks, including JPMorgan Chase ( JPM ), Morgan Stanley ( MS )

and Wells Fargo ( WFC ) due to report.