Stock Market Surges as President Trump Pauses Tariffs
Date: April 9, 2025
By: Smart Money Mindset Team
In a remarkable turnaround, U.S. stock markets experienced a significant rally on Wednesday, with the Dow Jones Industrial Average soaring nearly 3,000 points—marking the biggest jump in history. The surge came in response to President Donald Trump’s announcement of a 90-day pause on reciprocal tariffs for most countries, coupled with an increase in tariffs on China.
Historic Gains Across Indexes
The S&P 500 rose over 9.5%, achieving its best trading day since 2008, while the tech-heavy Nasdaq Composite skyrocketed by 12%, recording its second-best day ever and its largest gain since 2001. The Dow closed up approximately 7.8%, highlighting the vigor with which investors responded to the tariff news.
In a post on Truth Social, Trump stated, "I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately." He also indicated a substantial increase in tariffs on China, raising them to 125%.
Impact on Major Tech Stocks
The announcement sparked a significant rally among major tech stocks, with Nvidia (NVDA) jumping over 18%, Tesla (TSLA) climbing almost 23%, and other big names like Apple (AAPL) and Meta (META) rising approximately 15% each. Amazon (AMZN) also contributed to the rally with a 12% gain.
The significant stock market gains followed a series of turbulent trading days, prompting a sense of relief among investors who had experienced a downturn in the preceding week.
Trump Reflects on Market Response
In remarks after the market opened, Trump reflected on the stock market’s extreme fluctuations, stating, "I thought people were jumping a bit out of line." He seemed pleased with the day’s developments, calling it "the biggest day in financial history," amid cheers from investors.
Treasury Yields and Chinese Tariffs
While stocks surged, the benchmark 10-year Treasury yield continued its upward trend, nearing 4.4% as some gains were trimmed. China, meanwhile, announced retaliatory measures, preparing to implement an 84% tariff on U.S. goods, escalating an already tense trade conflict.
The recent backtrack on tariffs from Trump capped off a week of intense market volatility. The initial implementation of reciprocal tariffs last week had sent shivers through the markets, pushing the Nasdaq into bear market territory and bringing the S&P 500 and Dow closer to similar lows.
Market Analysts Weigh In
Piper Sandler’s chief investment strategist Michael Kantrowitz highlighted the market’s need for stability amidst uncertainty, suggesting that this announcement provided investors with a much-needed "dose of relief."
As the trading day concluded, the turnaround not only showcased market resilience but also underscored the delicate balance of economic policies and their immediate impact on financial sentiment.
With ongoing developments in U.S.-China trade relations and broader economic indicators, investors will be watching closely to see how the markets react in the days to come.
Conclusion
Wednesday’s surge represents a pivotal moment in U.S. financial history, illustrating the power of policy announcements on market performance. As traders digest the implications of Trump’s tariffs and the potential for future economic conditions, the focus will be on sustained growth and stability amidst fluctuating geopolitical tensions.
For continuous updates and insights into the stock market and economic trends, stay tuned to Smart Money Mindset.
Share this article:
