In a significant policy shift, President Donald Trump has authorized a 90-day suspension of most tariffs, leading to a historic surge in U.S. stock markets. The S&P 500 jumped 9.5%, the Dow Jones Industrial Average rose 7.9%, and the Nasdaq Composite soared 12.2%, marking some of the most substantial gains in recent years.
The rally was sparked by President Trump’s social media announcement on April 9, 2025, stating that over 75 countries had sought negotiations without retaliating against U.S. tariffs. Consequently, he authorized a “90-day PAUSE” and reduced the “Reciprocal Tariff” to 10% during this period. However, tariffs on Chinese imports were increased to 125%, citing China’s “lack of respect” for global markets.
Investors responded positively to the news, alleviating fears of an escalating trade war and potential recession. The S&P 500’s 9.5% surge was its largest single-day gain since 2008, while the Dow’s 2,962-point increase set a record for the largest point gain in its history.
Despite the market’s enthusiasm, some analysts remain cautious. China’s retaliatory tariffs of 84% on U.S. goods and the ongoing trade tensions suggest that economic uncertainties persist. Treasury Secretary Scott Bessent emphasized that the pause is intended to provide time for negotiations with trading partners.
