By Shashwat Chauhan and Purvi Agarwal

(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 down 5%, Microsoft 3.3% and Nvidia 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 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 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.