Stock Market Soars as Trump Pauses Tariffs: A Historical Day for US Stocks
By Brett LoGiurato, Karen Friar, and Josh Schafer
Updated April 10, 2025
In a day marked by unprecedented gains, the US stock market experienced a remarkable surge on Wednesday following President Trump’s announcement of a 90-day pause on tariffs for most countries. This announcement, which aims at temporarily easing trade tensions, resulted in the S&P 500 recording its best day since the 2008 financial crisis.
A Leap in the Markets
The benchmark S&P 500 index climbed over 9.5%, a remarkable jump that has not been witnessed in years. The tech-heavy Nasdaq Composite saw a staggering increase of 12%, marking its second-best performance on record and the largest rise since 2001. Additionally, the Dow Jones Industrial Average surged by more than 7.8%, translating to an impressive increase of roughly 3,000 points.
In his announcement on Truth Social, Trump declared, "I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately." He also indicated that while many tariffs were being paused, the duties on Chinese imports would rise to 125%.
An Exciting Yet Cautious Market Reaction
The stock market’s response was immediate and vigorous, attributed to the perceived decrease in immediate trade risks. Trump, reflecting on this market explosion, stated that he thought some investors were acting "a bit out of line" and acknowledged the stock and bond markets’ reaction to his announcement. He referred to the day as "the biggest day in financial history," highlighting the magnitude of the gains.
Tech giants led the charge, with notable surges in stock prices: Nvidia rose over 18%, Tesla gained nearly 23%, and both Apple and Meta increased about 15%. Moreover, Amazon recorded a substantial increase of 12%.
Impacts of the Tariff Wars
The news comes at a time when trade relations between the United States and China have intensified, leading to an increasingly volatile market environment. Notably, earlier on Wednesday, China retaliated against the increasing tariffs, announcing a hike in duties to 84%. This dynamic adds layers of complexity to the trade landscape and underscores ongoing economic uncertainties.
Monday’s announcement appeared to reverse a preceding tumultuous week characterized by the swift implementation of "reciprocal" tariffs. Originally, markets were shaken by sudden tariff hikes affecting Vietnam, Japan, India, and several other countries.
Expert Insights
Piper Sandler chief investment strategist Michael Kantrowitz remarked that despite ongoing uncertainties in the market, Trump’s announcement provided a significant "dose of relief." He suggested that while the overall uncertainty remains, the most severe scenarios appear to have been mitigated.
Former Treasury Secretary Larry Summers, however, offered a more cautious perspective. He emphasized that although the tariff pause was a step in the right direction, it does not signify that the economy has entirely emerged from its troubles.
Conclusion
The events of Wednesday serve as a pivotal moment in the current economic climate, as markets reacted positively to Trump’s tariff pause. Investors and analysts alike will be closely monitoring the unfolding trade situation, particularly the evolving dynamics between the U.S. and China. The recent surges in stock prices indicate a temporary lift in investor sentiment, driven by hope for a more stable trade environment ahead.
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