Stock Markets Surge as Trump Pauses Most Tariffs for 90 Days
New York, NY – April 10, 2025, 2:43 AM PDT
Global stock markets erupted in a powerful rally Wednesday after President Donald Trump announced a 90-day pause on most of his newly imposed “reciprocal” tariffs, sparing all countries except China from steep levies that had roiled financial markets since their rollout on April 2. The dramatic reversal, posted on Truth Social just before 1:30 PM PDT on April 9, slashed tariffs to a universal 10% for 75 nations that refrained from retaliation, while escalating duties on Chinese imports to 125%—a move Trump justified by citing Beijing’s “lack of respect” after its 84% retaliatory tariff hike. The U.S. market response was immediate and historic, with the Dow Jones Industrial Average soaring 2,963 points (7.9%), the S&P 500 leaping 9.5%—its biggest daily gain since October 2008—and the Nasdaq rocketing 12.2%, its largest jump since January 2001.
The rally erased days of punishing losses that saw the S&P 500 shed nearly 19% from its February peak, teetering on the edge of a bear market. Since Trump’s initial tariff unveiling—branded “Liberation Day” to address a $1.9 trillion trade deficit—global equities had lost over $6 trillion, per Reuters, as investors braced for a recession. Wednesday’s pause, prompted by a bond market rout and pressure from allies like Elon Musk and Treasury Secretary Scott Bessent, shifted sentiment overnight. “This is a pivotal moment,” said Gina Bolvin of Bolvin Wealth Management, “a step toward clarity after chaos.”
Big winners included tech giants Nvidia (+18.7%) and Apple (+15.3%), battered earlier by China exposure, and airlines like Delta (+23.4%), which had pulled 2025 forecasts amid trade-war fears. Retailers like Walmart (+8%) also surged, buoyed by its domestic supply chain strength. Overseas, Asia-Pacific markets echoed the optimism Thursday: Japan’s Nikkei 225 soared 9%, South Korea’s Kospi rose 6%, and Australia’s ASX 200 gained 4.6%. European indices followed suit, with the FTSE 100 up 6% and Germany’s DAX climbing 8%.
Yet, the relief comes with caveats. China’s 125% tariff wall and the lingering 10% baseline duty—plus sector-specific levies on cars (25%), steel, and aluminum—keep economic uncertainty alive. Goldman Sachs, while lowering recession odds to 45%, warns of minimal growth if tensions persist beyond July 8. “The pause buys time, but we’re not out of the woods,” said Jeffrey Palma of Cohen & Steers, noting a stabilizing $39 billion U.S. Treasury auction. For now, Wall Street savors a reprieve, but the U.S.-China trade war’s next chapter looms large.