A surprisingly cool inflation report wasn't enough for the Dow Jones Industrial Average and other major stock indexes to stop sliding Thursday. The pullback came after President Donald Trump sparked big market gains a day earlier with a 90-day pause on most tariffs.
Three losers on Thursday's market were Nvidia and Tesla, along with Nvidia partner Taiwan Semiconductor Manufacturing.
After the opening bell, the Dow Jones Industrial Average lost more than 900 points, or 2.3%. The S&P 500 declined 2.6%. The tech-heavy Nasdaq composite sold off 3%.
The 10-year Treasury yield ticked lower to 4.33% early Thursday. And oil prices dropped, as West Texas Intermediate futures traded near $60.55 per barrel.
Among exchange traded funds, the Invesco QQQ Trust lost 3%, while the SPDR S&P 500 ETF dropped 3.5% after the open.
Tesla stock careened 5% lower in morning action Thursday, threatening to erase a part of Wednesday's 22% surge. And shares of the Elon Musk-led company remain around 45% off their record high of 488.54, reached on Dec. 18.
Early Thursday, Tesla stock received price-target cuts from three Wall Street brokerages: Goldman Sachs, Mizuho and UBS. The general consensus is that tariff uncertainty will continue to pressure shares of the electric-vehicle leader.
Nvidia stock sold off 4.4% in Thursday's morning trading. The artificial intelligence giant rebounded back from heavy losses Wednesday, with a rally of nearly 19%.
Taiwan Semiconductor, better known as TSMC, reported strong first-quarter sales early Thursday, with a 42% rise vs. a year earlier in local currency, partially boosted by customers stocking up chips ahead of Trump tariffs. Shares dipped 2% Thursday. Nvidia and Apple are major TSMC customers.
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Trump Tariffs: 90-Day Pause (Except China)
Midday Wednesday, President Trump announced a 90-day pause in reciprocal tariffs for "non-retaliating countries." A 10% baseline tariff will stay in place on virtually all countries. Countries facing a rate above 10% will have the chance to negotiate that down over the next 90 days.
In addition, Trump said he'll raise the tariff on Chinese imports to 125%, after just raising it to 104% from 54% overnight. That came as China hikes its tariff on U.S. goods to 84%.
In other economic news, the Labor Department's consumer price index fell 0.1% in March, with a 2.4% annual increase. The CPI was expected to rise 0.1% for the month of March with an annual increase of 2.6%, per Econoday. The core CPI, which excludes food and energy, rose 0.1% on the month with a year-over-year increase of 2.8%. It was expected to rise 0.3% on the month with a year-over-year increase of 3%.
Meanwhile, the Labor Department's initial jobless claims rose to 223,000 vs. 219,000 in the previous week. They were expected to rise to 225,000.
In stocks, key earnings movers include CarMax and Constellation Brands. CarMax stock plunged 12%, while Constellation shares lost 4% in early action.
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Dow Jones, Major Indexes Rebound
On Wednesday, the Nasdaq composite soared 1,857 points, or 12.2%, while the S&P 500 rallied 9.5%. Small caps weren't far behind as the Russell 2000 gained 8.5%. Blue chips on the Dow Jones Industrial Average rallied 7.9%.
Following that big market rebound, now is an important time to read IBD's The Big Picture column for how to handle the current market and to track the updated exposure level.
Among the best companies to watch in the current stock market are Ollie's Bargain Outlet, Spotify Technologies and TJX.
Along with Apple and Nvidia, Dow Jones components making notable moves this week were Amazon.com, Microsoft and UnitedHealth Group.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones Stocks: UnitedHealth Further Above Buy Point
Shares of Dow Jones component UnitedHealth inched higher in morning action Thursday. The stock surged another 4.6% Wednesday, further above a 553.91 buy point, according to MarketSurge chart analysis. A cup base is also forming that has a 630.73 entry.
Outside the Dow, Ollie's Bargain Outlet found much-needed support at the 50-day line Wednesday, still below a 115.42 buy point in a double-bottom base. Shares dropped 1.7% Thursday.
Music streaming giant Spotify has formed a double-bottom base with a 621.20 buy point. Spotify stock dropped 2.5% Thursday, finding resistance at the 50-day line.
Finally, off-price retailer TJX is again attempting to clear a 127.58 buy point in a double bottom. TJX stock dipped 0.3% in early morning trading.
Keep in mind that now is not a good time to buy stocks amid heavy selling in recent weeks. IBD currently recommends 0% to 20% stock exposure under current conditions.
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Stock Market: Companies To Watch
These are four stocks in or near buy zones in Thursday's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| UnitedHealth | 553.91 | Double bottom | |
| Spotify | 621.20 | Cup with handle | |
| TJX | 127.58 | Double bottom | |
| Ollie's Bargain Outlet | 115.42 | Double bottom |
Source: IBD Data as of April 8
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Dow Jones Leaders: Amazon, Apple, Microsoft
Magnificent Seven stocks are rebounding from their lows after Trump's 90-day pause on tariffs. Dow Jones component Amazon hit a fresh recent low Monday before reversing higher. And Amazon stock dropped 2.8% early Thursday.
IPhone maker Apple pulled back 4.6% Thursday morning. Its shares soared more than 15% Wednesday, rebounding from their lowest level since May.
Finally, software giant Microsoft declined 2.5% Thursday. Shares reached a new 52-week low earlier this week before rebounding back to their 50-day line, a key resistance level to watch.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
