(Updates to early New York trading)

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US stocks fall early even as consumer prices unexpectedly

fall

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Europe, Asia stocks rally after Trump pauses most tariffs

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Bond market rout stabilizes

By Caroline Valetkevitch

NEW YORK, April 10 (Reuters) - Major stock indexes fell

on Thursday, with the Nasdaq down more than 3% in early trading,

after the previous session's massive relief rally on U.S.

President Donald Trump's move to temporarily lower the heavy

tariffs on many countries, while the U.S. dollar also sank.

U.S. Treasury prices moved higher after this week's sharp

bond selloff.

The stock declines came despite U.S. data showing consumer

prices unexpectedly fell in March.

"All things being equal, if tariffs are paused and inflation

is going lower, it's green light go if you're an investor," said

Jake Dollarhide, chief executive officer of Longbow Asset

Management in Tulsa, Oklahoma.

Amid the head-spinning changes in the market and news on

tariffs, investors also are gearing up for the start of

quarterly U.S. earnings, with results from some of the biggest

U.S. banks including JPMorgan Chase ( JPM ) due on Friday.

More news is to come on the tariff front, so "there will

still be a lot of pulled guidance," Dollarhide said.

"It may be that the market is taking back some of

yesterday's rip-your-face-off rally because they realize some of

the relief is not as great as they thought."

Markets have been roiled since Trump's announcement of

sweeping tariffs late on April 2.

The Dow Jones Industrial Average fell 915.22 points,

or 2.30%, to 39,693.23, the S&P 500 fell 153.61 points,

or 2.81%, to 5,303.29 and the Nasdaq Composite fell

592.43 points, or 3.46%, to 16,532.54.

MSCI's gauge of stocks across the globe fell

2.71 points, or 0.35%, to 782.57, while the pan-European STOXX

600 index rose 4.32%.

Trump's reversal on tariffs on Wednesday pushed equities

higher across the globe, starting with a 9.5% pop in the S&P 500

on Wednesday.

Stocks in Asia also rallied from Trump's announcement on

tariffs, including in China, even though Trump on Wednesday also

said he would raise the tariff on Chinese imports to 125%.

China's CSI300 blue-chip index rose 1.3%, while

Hong Kong's Hang Seng Index advanced 2.1%.

Other tariffs also still stand. A 10% blanket duty on almost

all U.S. imports will remain in effect, the White House said.

The announcement also does not appear to affect duties on autos,

steel and aluminium that are already in place.

Also, the European Union will put on hold for 90 days its

first countermeasures against Trump's tariffs, European

Commission President Ursula von der Leyen said on Thursday.

The onshore yuan fell to its weakest level since

December 2007 at 7.3518 per dollar, before strengthening.

Against the Japanese yen, the dollar weakened 1.94%

to 144.86, while the euro was up 1.73% against the

dollar.

BONDS STABILIZE

U.S. Treasury prices edged higher after a solid 10-year note

auction and pause in some trade tariffs on Wednesday helped the

market stabilize from a sharp bond market selloff earlier this

week.

The violent U.S. Treasury selloff in the previous sessions,

evoking the COVID-era "dash for cash", had reignited fears of

fragility in the world's biggest bond market.

Analysts attributed some of the move to large liquidations

as hedge funds and other asset managers unwound trades and sold

assets due to margin calls and losses.

The 10-year note yield was last down 4.7 basis

points on the day at 4.349%. Yields move opposite to prices.

Elsewhere, oil prices fell. U.S. crude fell 4.33% to

$59.65 a barrel and Brent was last at $62.94 per barrel,

down 3.88% on the day.