In a stunning turnaround, U.S. stocks surged on Wednesday, April 9th, 2025, after President Donald Trump announced a 90-day pause on most of his recently imposed tariffs, except on China.
The announcement sent the Dow Jones Industrial Average soaring by over 2,700 points, while the Nasdaq jumped a jaw-dropping 10.77%.
Traders clearly welcomed the breather from trade tensions with open arms.
Big Numbers, Bigger Reactions
Dow Jones surged 7.27% to 40,382, S&P 500 spiked 8.51% to 5,406, Nasdaq exploded 10.77% to 16,912, while the Volatility Index (VIX) cooled off to 34.54 after peaking at nearly 58 earlier in the day.
Investors were this close to panic mode after Trump first announced sweeping tariffs last week, sparking a brutal sell-off. But with this new 90-day “pause,” the mood flipped instantly.
But What Did Trump Actually Say?
The U.S. president said he’s putting the brakes on reciprocal and 10% tariffs for many countries, which is effective immediately.
However, China didn’t get that leniency. Instead, tariffs on Chinese imports were jacked up to a whopping 125%.
In retaliation, China hiked levies on all U.S. goods to 84%, effective April 10, 2025.
So, while there’s relief for most, the U.S.–China trade tension is still very much alive.
Tech is at the Forefront
This is no surprise here, tech stocks came roaring back, Nvidia (NVDA) jumped 15%, and Apple (AAPL) rallied more than 9%.
The entire tech sector gained nearly 12%, leading the S&P 500’s 11 industry indexes.
Even Delta Airlines (DAL) got in on the action, spiking 24% after beating Q1 earnings expectations, despite pulling back its full-year guidance.
Relief with a Side of Skepticism?
Experts know that the underlying uncertainty isn’t gone completely. A 90-day pause doesn’t mean smooth sailing from here.
Companies are still staring down a cloudy trade outlook, and upcoming corporate earnings will be under the microscope.
Investors are bracing for consumer price inflation reports on Thursday, April 10, 2025, and Q1 earnings from major banks like JPMorgan on Friday, April 11, 2025.
Oh, and the Fed? Their meeting minutes revealed concerns about a tightrope act between rising inflation and slowing growth.
So yes, the rally was loud, but the undercurrents of worry are still there.
