NEW YORK – After a sharp rally fuelled by US President Donald Trump’s decision to delay global tariff hikes, Wall Street’s three main indices have once again fallen by more than 2.5%.

On Thursday (10/4), the Dow Jones Industrial Average fell 1,014.79 points or 2.50% to 39,593.66, the S&P 500 dropped 3.46% to 5,268.05, and the Nasdaq Composite declined 4.31% to 16,387.31.

“Investors are still uneasy about this because they don’t know what the endgame is,” said Paul Nolte, senior wealth advisor at Murphy & Sylvest in Elmhurst, Illinois. “What we’re seeing is persistent investor anxiety about tariffs.”

Shares of the so-called Magnificent Seven – large-cap tech firms linked to artificial intelligence – declined between 2.3% and 7.3%.

Marko Kolanovic, former Global Head of Strategy at JPMorgan Chase & Co, told MarketWatch that the tariff delay would likely boost sentiment. However, he added, “I wouldn’t necessarily chase the rally. There are still risks that haven’t materialised.”

Later this week, Kolanovic noted, companies will begin reporting first-quarter earnings, which may reflect the uncertainty surrounding Trump’s trade agenda. That, in turn, could trigger further market volatility.

“I think investors will now look for more reasonable fair value pricing, with earnings season about to begin.”

Investors are also awaiting weekly US jobless claims data due on Thursday. “We’ll know more tomorrow about whether companies have started laying people off.”

As to whether Trump’s trade agenda is close to resolution, Kolanovic said, “I don’t think the Europeans are suddenly going to give Trump everything he wants.”

The fall in the Cboe Volatility Index (VIX), widely known as Wall Street’s “fear gauge,” suggests that the market may calm, at least temporarily. The VIX fell more than 32% to 35.66 on Wednesday.

The VIX is often called the “fear index” because it tends to rise when investors are anxious about uncertainty or potential market downturns. A high VIX implies sharp market swings (either up or down), while a low VIX suggests greater stability. (DK/MT/ZH)