U.S. stocks are falling Thursday, led by AI superstars that are now feeling the painful downside of big expectations. The S&P 500 was down 0.7% in morning trading, resuming its slide after a mini-recovery from the prior day helped it claw back some of its sharp drop over recent weeks.

U.S. stocks were resuming their slide Thursday morning, fueled by concern over AI revenue and Trump’s tariffs.

Stocks are falling again on Wall Street as companies and investors react to President Donald Trump’s decision to impose tariffs on the U.S.’s biggest trading

The hope on Wall Street is that Trump is using the threat of tariffs as a tool for negotiations and that he’ll ultimately go through with policies that would mean less damage for the global economy and trade. Tariffs could raise prices on everyday items even more for U.S. households, when high inflation has proven to be stubborn to subdue fully.

The S&P 500 was 1.1% higher in afternoon trading, bouncing back from its sell-off that had erased all of its “Trump bump " since the president's election in November. The Dow Jones Industrial Average was up 493 points, or 1.2%, as of 2:45 p.m. Eastern time, and the Nasdaq composite was 1.3% higher.

U.S. stocks climbed after President Donald Trump pulled back on some of his tariffs, raising hopes he may avoid a worst-case trade war that grinds down economies and sends inflation higher.