Short covering rally leads to brutal reversal in stocks

Wall Street’s historic rally has experienced a severe reversal, as stocks are currently plummeting due to economic angst. Stock market selling intensified on Thursday after the White House clarified that tariffs on China will total 145%, not the previously stated 125%. President Donald Trump had announced on Wednesday that he would reduce tariffs on China to 125%. However, that figure did not account for an additional 20% tariff related to the fentanyl crisis. Although stocks have bounced back from their intraday lows, here’s a quick recap: – U.S. stocks and the dollar fell further in afternoon trading. – European and Asian stocks finished higher after Trump paused most tariffs. – The bond market rout appears to be stabilizing.