As Trump tariffs and declining AI stocks push the Nasdaq 10% below its record, Wall Street plummets.

The sell-off on Wall Street resumed on Thursday, and the U.S. stock market, which had been shaken by the turbulence caused by President Donald Trump's tariffs and economic uncertainty, plummeted. After recovering some of its recent severe decline with a mini recovery the day before, the S&P 500 fell 1.8% to resume its decline.

The Nasdaq composite fell 2.6% and the Dow Jones Industrial Average fell 427 points, or 1%, to close more than 10% below its December peak. President Trump provided a one-month reprieve from his 25% tariffs on a number of items imported from Canada and Mexico, but stocks still slumped. That contrasts with the day before, when stocks bounced after he granted automakers a one-month exemption.

All of the actions maintain optimism that Trump might be utilizing tariffs as a negotiation tactic rather than as a long-term strategy, and that he might eventually be able to avoid a trade war that would be disastrous for economies and raise inflation.