Wall Street Soars as Trump Temporarily Halts Tariffs, Boosting Investor Confidence
Wall Street is experiencing a significant surge following President Donald Trump's announcement on Wednesday to suspend tariffs for 90 days for over 75 countries that have not retaliated against U.S. trade impositions. This decision has led to remarkable increases in the New York Stock Exchange, with gains between 6% and 9% across major indexes. The S&P 500 saw a rise of 7%, while the Nasdaq jumped 9%, and the Dow Jones climbed 6%.
In particular, stocks that faced recent declines, such as Apple, have started to rebound handsomely with a notable 12% increase from the previous day. According to analysts, this marks the strongest rise in approximately five years, reminiscent of the stock market's recovery post-COVID-19 pandemic crash. However, the true sustainability of this optimism remains uncertain as trading progresses through the session.
The tariff suspension is part of Trump's ongoing strategy to negotiate favorable trade terms with nations that have not engaged in retaliatory tariffs, while simultaneously increasing tariffs on China to 12.5%. Commerce Secretary Howard Lutnick remarked on social media that both he and Treasury Secretary Scott Bessent were present as Trump drafted what he termed one of the most extraordinary messages of his presidency, emphasizing that the world is prepared to work with him to reform international trade, unlike China's current trajectory.
In other market developments, the yield on the U.S. 10-year Treasury bond rose dramatically to 5.02%—a height not seen since late 2023—before moderating down to approximately 4.36%. Additionally, Texas oil futures saw a 2% rebound, rising to $60 a barrel, as fears of an impending recession eased slightly. Gold prices also soared by $3, reaching $30.79 an ounce in response to the news.
As President Trump heads into a critical negotiation timeframe with global leaders, stock market participants are closely monitoring the situation for any further developments that may impact economic conditions and international trade relations.
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