Athira Sethu
Kochi, 10 April 2025
American stocks enjoyed one of their all-time best days on Wednesday when President Donald Trump came out and put a temporary halt on most of the tariffs that he had initially planned. It made the investors extremely delighted and provided a much-needed lift to Wall Street.
The S&P 500, a principal stock market index, surged 9.5% in a single day — a rise that typically takes an entire year to accomplish. Stocks had been declining earlier in the day as investors worried that the current trade war with China might send the world into recession. But Trump’s unexpected tweet reversed everything.
Trump indicated that he would suspend new tariffs for 90 days, particularly for nations that had not retaliated against his previous tariff increases. China alone was exempted. Tariffs on Chinese imports will increase exponentially, potentially still causing trouble in the future.
In spite of this welcome news, shares are still lower than they were last week. But on Wednesday, everyone focused on the good. The Dow Jones increased by almost 3,000 points, 7.9%. The Nasdaq increased by 12.2%, and the S&P 500 recorded its third-best day since 1940.
The rally was able to keep the stock market out of what’s referred to as a “bear market” — a description that’s used when stocks fall more than 20%. The S&P 500 is now down only around 11% from its high.
The bond market also helped the mood. The government sold Treasury bonds without major issues, calming fears. Normally, during tough times, Treasury yields fall. But recently they were rising, adding stress. After the tariff pause, yields dropped slightly, easing tension.
While the trade war was not yet won, investors were relieved. Financial advisers indicate such days prove it is dangerous to panic and unload investments in downturns — you could end up missing a huge rebound such as this one.
Nearly all stocks went up, particularly airlines such as Delta, which jumped 23.4%. For the most part, it was a behemoth day for the stock market and a relief moment for worried investors.
