Dow jumps 8%, Nasdaq posts biggest gain in 24 years, and global markets rally after Trump announces 90-day tariff pause on all but China.
April 10, 2025: New Delhi:
Global markets breathed a collective sigh of relief on Wednesday after US President Donald Trump paused his sweeping tariff policy, excluding only China from the temporary suspension. The announcement sent stock markets into a euphoric rally, with the S&P 500 marking its third-best single-day performance since World War II.
Also Read: China Issues Travel Warning for U.S. Citizens Amid Escalating Tariff War with Washington
Trump’s 90-day tariff pause followed days of heavy sell-offs across equities, bonds, and the US dollar. Analysts had warned that his aggressive tariff plan — which threatened to mirror protectionist levels from over a century ago — could tip the global economy into recession.
But the unexpected reversal sparked an instant rally on Wall Street.
- The S&P 500 surged 9.5%, its best showing since 2008.
- The Nasdaq soared 12.2%, its biggest one-day gain in 24 years and second-highest ever.
- The Dow Jones Industrial Average rose nearly 8%.
Asian markets followed suit in early Thursday trading:
- Japan’s Nikkei 225 was up 8.3%,
- South Korea’s Kospi gained 5%,
- Australia’s ASX 200 jumped over 6%.
- Taiwan’s Taiex exploded by 9.2%, driven by tech giants TSMC (+10%) and Foxconn (+9.8%).
In China, despite Trump raising tariffs on Chinese imports to a record 125%, investor sentiment remained positive. The Hang Seng Index in Hong Kong climbed 2.7%, while Shanghai’s benchmark gained 1.3%.
Safe haven assets also moved:
- The Japanese yen strengthened 0.64% to 146.83 per dollar.
- Gold rose 0.5%, reaching $3,097 an ounce.
🔍 Market Voices React
- Masayuki Kubota, Chief Strategist at Rakuten Securities, hailed the move as “a wonderful big surprise.”
- Gina Bolvin, President at Bolvin Wealth Management, called it “a pivotal moment we’ve been waiting for,” aligning with the onset of earnings season.
However, many market experts expressed caution, pointing to the lack of clarity beyond the 90-day pause.
“The real test will come in July, when this pause ends. Investors should prepare for potential volatility, especially if US-China tensions escalate further,” a Reuters analyst noted.
Earlier on Wednesday, Deutsche Bank issued a note warning that global investors had begun to “lose faith” in the trajectory of US trade policy, signaling the market was entering uncharted territory.
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