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Indexes down: Dow 2.95%, S&P 500 3.64%, Nasdaq 4.37%

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GM, Ford downgraded by brokerages UBS, Goldman Sachs

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March CPI at 2.4% YoY vs 2.6% estimate

(Updates with afternoon trading levels)

By Shashwat Chauhan and Purvi Agarwal

April 10 (Reuters) - Wall Street's main indexes fell on

Thursday on concerns over the impact of high tariffs on global

economy, with stocks pulling back from the sharp gains a day ago

when U.S. President Donald Trump moved to temporarily lower the

levies on some countries.

The U-turn came less than 24 hours after the new tariffs

took effect on most trading partners, lifting the S&P 500

to its biggest single-day percentage gain since 2008 on

Wednesday. The Nasdaq posted its biggest one-day jump

since 2001.

Trump also announced a 90-day pause on many of his new

reciprocal tariffs, but raised them to 125% on Chinese imports

from 104%. Beijing had slapped 84% tariffs on U.S. imports to

match Trump's earlier levy.

The European Union said it had agreed on a 90-day pause on

counter tariffs on U.S. goods, which were due on April 15.

"Even though reciprocal tariffs have been temporarily

watered down, the 10% universal tariff that remains in place can

still have a material impact on inflation that may start to show

up over the next few CPI reports," said Jason Pride, chief of

investment strategy and research at Glenmede.

Data on Thursday showed the consumer price index

unexpectedly dipped 0.1% in March and advanced 2.4% in the 12

months through March. Economists polled by Reuters had forecast

the CPI edging up 0.1% and climbing 2.6% year-on-year.

Fed Governor Michelle Bowman said it is unclear how the

tariffs might affect the economy.

Traders now see nearly 90 basis points of interest-rate cuts

in 2025, according to LSEG data.

At 11:29 a.m. ET, the Dow Jones Industrial Average

fell 1,199.50 points, or 2.95%, to 39,408.95, the S&P 500

lost 199.63 points, or 3.64%, to 5,258.26 and the Nasdaq

Composite lost 749.79 points, or 4.37%, to 16,375.94.

Most S&P 500 sectors nursed losses. Information technology

and energy led the fall, sliding 5% and 6%,

respectively.

Big Tech came under pressure once again, with Apple ( AAPL )

down 5%, Microsoft ( MSFT ) 3.3% and Nvidia ( NVDA ) 5.6%.

"Any pullback today would be very normal after a really big

move like yesterday's. I would expect that for the next day or

two we could see some profit taking," said Larry Tentarelli,

chief technical strategist at Blue Chip Daily Trend Report.

Despite Wednesday's bounce, the S&P 500 and the Dow

are about 7% below levels seen before the reciprocal tariffs

were announced last week.

Automakers General Motors ( GM ) and Ford fell about

4% after the previous session's gains. Downgrades from UBS and

Goldman Sachs on the stocks added to their declines.

U.S. earnings season could also offer more insights into the

health of corporate America. Big banks such as JPMorgan Chase ( JPM )

will report first-quarter results on Friday.

The U.S. House of Representatives passed a budget plan that

lays the groundwork for extending Trump's 2017 tax cuts.

Declining issues outnumbered advancers by a 5.83-to-1 ratio

on the NYSE and by a 3.98-to-1 ratio on the Nasdaq.

The S&P 500 posted no new 52-week highs and three new lows

while the Nasdaq Composite recorded eight new highs and 65 new

lows.

(Reporting by Shashwat Chauhan and Purvi Agarwal in Bengaluru;

Editing by Arun Koyyur)