LIVE MARKETS-Wall Street reverses after massive tariff-pause rally

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WALL STREET REVERSES AFTER MASSIVE TARIFF-PAUSE RALLY

Shares on Wall Street are trading lower early on Thursday, reversing some of Wednesday's rally driven by President Donald Trump's decision to pause for 90 days the implementation of the tariffs, including temporarily lowering the heavy duties on many countries.

The declines came after a better-than-expected U.S. inflation report that showed U.S. consumer prices unexpectedly fell in March. The consumer price index (CPI) dipped 0.1% last month after gaining 0.2% in February, data showed. Year-over-year, the CPI advanced 2.4% after rising 2.8% in February.

"Today's softer-than-expected CPI release feels backward looking given the large changes to trade policy seen in recent days," writes Kay Haigh, global co-head fixed income and liquidity solutions, at Goldman Sachs Asset Management, in emailed comments.

"Going forward the Fed is likely to face a difficult trade-off as tariff driven price increases start to feed through to the inflation data and activity remains soft. We expect the Fed’s initial reaction to be cautious, but the risks remain that a sharper than expected slowdown in the economy could result in a resumption of the Fed's easing cycle."

Analysts said the inflation outlook remained tilted to the upside after President Donald Trump doubled down on tariffs on imported Chinese goods to 125%.

That said, White House economic adviser Kevin Hassett pointed out on Thursday that the United States is considering offers from 15 countries on tariff agreements and is close to deals with some of them.

Here is an early market snapshot:

(Gertrude Chavez-Dreyfuss )

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