President Donald Trump announced a 90-day pause on certain tariffs, excluding those on China. The move sent US stocks surging, with the Dow gaining 2,963 points (7.87%), the S&P 500 climbing 9.52%, and the Nasdaq rocketing 12.16%. The S&P 500 had its best day since October 2008, while the Nasdaq saw its best day since January 2001.
Chris Brigati, SWBC’s chief investment officer, said, “The market’s move upward is violent, and it speaks to how badly the market wanted clarity on this issue.
Nearly every company in the S&P 500 saw gains, with notable performers including Amazon (11.98%), Nike (11.36%), and airline stocks like United Airlines (26.14%). Tech giants Apple and Nvidia rose 15.33% and 18.72%, respectively, on the Nasdaq. Despite the rebound, the S&P 500 remains 3.7% below its April 2 close prior to the initial tariff announcement.
Trump pauses tariffs, market soars
Uncertainty persists as Trump escalates the trade war with China by raising tariff rates to 125%. Universal duties of 10% remain on all US imports, alongside specific sector tariffs.
Jamie Cox, managing partner at Harris Financial Group, noted, “Trump illustrated to everyone in the market today how incredibly difficult it is to trade around his tariff regime because he and only he knows when it ends.
Global markets experienced a downturn earlier in the day, with Japan’s Nikkei closing 4% lower and South Korea’s Kospi entering bear market territory. European markets also suffered, with the STOXX 600 index falling 3.5%. US oil prices rebounded, gaining 4.65% to $62.35 a barrel, while Brent crude rose 4.23% to $65.48 a barrel.
Bonds saw unusual volatility, with the 10-year US Treasury yield climbing above 4.3% as investors largely sold off bonds. Trump’s announcement provided momentary relief, but the escalating trade war with China and ongoing uncertainties remind investors of the volatile and unpredictable situation.
