02:32 PM EDT, 04/10/2025 (MT Newswires) -- US benchmark equity indexes tumbled intraday following a rally in the previous session, as markets tracked tariff updates.

The Nasdaq Composite was down 3.8% at 16,488.6 after midday Thursday, while the S&P 500 slid 3% to 5,290.8. The Dow Jones Industrial Average lost 2.3% to 39,659.6. All sectors were lower, led by energy. The three equity indexes soared Wednesday 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.

The tariff pause reduces immediate downside risks to the US economy, but prolonged uncertainty is expected to further weaken consumer and business spending, Morgan Stanley said in a note e-mailed Thursday.

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 Thursday.

US Treasury yields were lower intraday, with the two-year rate falling 10.2 basis points to 3.85% and the 10-year rate dropping two basis points to 4.37%.

In company news, CarMax ( KMX ) shares sank nearly 18%, the 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 13%, among the steepest declines on the S&P 500, while Walt Disney ( DIS ) declined 6.4%.

West Texas Intermediate crude oil was down 3.5% at $60.18 a barrel intraday. "Oil tumbled on fears of a deepening US-China trade war and a possible recession," D.A. Davidson said.

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."

Gold was up 3.3% at $3,181.30 per troy ounce, while silver gained 1.5% to $30.87 per ounce.