Talk about a comeback. After getting walloped last week, Wall Street climbed back on Tuesday, April 8, 2025, as investors clung to hope that tariff talks might be on the horizon.

As a matter of fact, the Dow Jones Industrial Average jumped 2.37%. While the S&P 500 rallied 2.36%, and the Nasdaq Composite climbed 2.60%.

Great numbers, if you ask me.

This has been their biggest one‑day bounce since November 2024. They’re trimming losses that had pushed all three down nearly 9% from pre‑tariff levels.

Tech and Banks are Leading the Charge

Big Tech stocks led the charge, with Nvidia surging 5.6% and Microsoft up 3%.

This is a clear sign that traders are banking on a pause in the tariff escalation. In the financial sector, JPMorgan Chase gained 4.5%, which has the bank’s sub‑index up by 3.3%.

Is This a Relief Rally or What?

“The market was in such a deep sell‑off that any whiff of negotiation sparked a relief rally,” says Andre Bakhos of Ingenium Analytics.

Indeed, futures had already ticked up between 0.9% and 1.7% early Tuesday as word spread that U.S. Treasury Secretary Scott Bessent is in talks with trading partners. Although, China has slammed U.S. tariff demands as “blackmail”.

Fear Gauge Eases… For Now

The CBOE Volatility Index (the VIX) also took a breather, sliding back from its recent spike to 40.36, a sign that traders are breathing a (temporary) sigh of relief.

Tuesday’s pop proves markets can rebound on even the slightest hint of tariff détente.

But with tensions still high and no guarantees of exemptions, this rally could be as fragile as a house of cards.

Any concrete moves toward talks could fuel another leg up, while fresh threats will likely reignite selling.