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The S&P 500 tumbled 3.5%, slicing into Wednesday’s surge of 9.5% following Trump’s decision to pause many of his tariffs worldwide. The Dow Jones Industrial Average dropped 1,014 points, or 2.5%, and the Nasdaq composite tumbled 4.3%.

"Trump blinks," UBS strategist Bhanu Baweja wrote in a report about the president's decision on tariffs, "but the damage isn't all undone."

In the aftermath of this week's tariff whiplash, Trump will decide what he wants out of trade talks with as many as 75 nations in the coming weeks.

Trump will also figure out next steps with China. While his 90-day pause on other tariffs caused the stock market to rally Wednesday, countries still face a baseline 10% import tax instead of the higher rates announced April 2.

“There will be a transition cost and transition problems,� Trump said at Wednesday's cabinet meeting. “But in the end it’s going to be a beautiful thing.�

Kevin Hassett, director of the White House National Economic Council, told Fox News’ “Fox and Friends" on Wednesday that the administration already has “offers on the table from more than 15 countries.�

The losses for U.S. stocks accelerated Thursday after the White House clarified that United States will tax Chinese imports at 145%, not the 125% tariff rate that Trump wrote about on his social media site Wednesday, once other previously announced tariffs were included.

"Everything is still very volatile, because with Donald Trump, you don't know what to expect," said Francis Lun, chief executive of Geo Securities. "This is really big uncertainty in the market. The threat of recession has not faded."

China, meanwhile, reached out to other countries around the world in apparent hopes of forming a united front against Trump.

The stock price of Warner Brothers Discovery, the company behind "A Minecraft Movie," dropped 13.8% for one of Wall Street's sharpest losses after China said Thursday it will "appropriately reduce the number of imported U.S. films." The Walt Disney Co.'s stock sank 6.6%

A spokesperson for the China Film Administration said it is "inevitable" that Chinese audiences would find American films less palatable given the "wrong move by the U.S. to wantonly implement tariffs on China."

That was after Trump and his Treasury secretary, Scott Bessent, sent a clear message to other countries Wednesday after announcing their tariff pause: "Do not retaliate, and you will be rewarded."

The European Union said Thursday it will put its trade retaliation measures on hold for 90 days and leave room for a negotiated solution.

It all demonstrates why many on Wall Street are preparing for more swings to hit markets, after the S&P 500 at one point nearly dropped into a "bear market" by almost closing 20% below its record.

Often, the whipsaw moves have come not just day to day but also hour to hour. The S&P 500 still remains below where it was when Trump announced his sweeping set of tariffs last week.

The swings also hit the bond market, which earlier showed encouraging signals that stress may be easing.

The bond market has historically played the role of enforcer against politicians and economic policies it deemed imprudent. It helped topple the United Kingdom's Liz Truss in 2022, for example, whose 49 days made her Britain's shortest-serving prime minister.

James Carville, adviser to former U.S. President Bill Clinton, also famously said he'd like to be reincarnated as the bond market because of how much power it wields.

Earlier this week, big jumps for U.S. Treasury yields had rattled the market, so much that Trump said Wednesday he had been watching how investors were "getting a little queasy."

Several reasons could have been behind the sharp, sudden rise in yields. Hedge funds may have been selling Treasurys in order to raise cash, and investors outside the United States may be dumping their U.S. investments because of the trade war.

Regardless of the reasons behind it, higher yields crank up pressure on the stock market and push rates higher for mortgages and other loans for U.S. households and businesses.

In stock markets abroad, indexes rallied across Europe and Asia in their first chances to trade following Trump's pause. Japan's Nikkei 225 surged 9.1%, South Korea's Kospi leaped 6.6% and Germany's DAX returned 4.5%.