Dow Jones Swings to Historic Gains as Trump Pauses Tariffs
By Brett LoGiurato, Karen Friar, and Josh Schafer
Published: April 9, 2025, 4:01 PM EDT
In an unprecedented turn of events, the stock market experienced a historic surge on Wednesday following President Donald Trump’s announcement of a significant pause on most reciprocal tariffs. The Dow Jones Industrial Average soared nearly 3,000 points—marking a substantial increase of over 7.8%—while the S&P 500 scored its best single-day performance since the financial crisis of 2008, surging over 9.5%.
Major Indices React to Tariff Announcement
President Trump’s announcement, made via a post on Truth Social, specified a 90-day pause on tariffs imposed on non-retaliating countries. "I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately," he declared. Simultaneously, Trump indicated that tariffs on China would increase to 125%, adding complexity to the ongoing trade tensions between the two countries.
This announcement set off a chain reaction in the markets, with the tech-heavy Nasdaq Composite rallying a staggering 12%—its largest one-day gain since 2001. As East Coast trading progressed, the markets displayed an extraordinary level of recovery from previous declines, leading to a sense of renewed optimism among investors.
Market Experts Weigh In
Commenting on the surge, President Trump acknowledged the positive movements in the stock and bond markets. "I thought people were jumping a bit out of line," he noted during a press conference, expressing satisfaction with what he termed "the biggest day in financial history."
Key tech stocks played a critical role in propelling the market upwards. Nvidia soared by over 18%, followed closely by Tesla, which added almost 23% to its market value. Other major players like Apple and Meta Platforms each recorded gains of approximately 15%, while Amazon increased by 12%.
Underlying Economic Context
Amid this whirlwind of market activity, the benchmark 10-year Treasury yield rose to approximately 4.4%. Analysts pointed out that China’s retaliatory measures, which included a hike in tariffs reaching 84%, could add volatility in the following days, reflecting ongoing uncertainties in the U.S.-China trade relations.
Earlier developments had seen Trump announce steep hikes on tariffs against several countries, including Vietnam, Japan, and India, overwhelming investor sentiment and pushing markets closer to bear territory. The dramatic shift in policy on Wednesday helped relieve some of that pressure, instigating what some are calling a much-needed "dose of relief."
Conclusion
As the market stabilized from its previous downward trajectory, experts are now evaluating the potential implications of Trump’s tariff pause. While some view this as a pivotal moment for economic recovery, others remain cautious about the future trajectory of U.S. trade policy. For now, investors are reacting positively, celebrating what could be a significant turning point in the financial landscape.
With all eyes on Washington and international trade dynamics, the next steps the administration takes will be crucial in influencing investor confidence and market stability.
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