In a significant policy shift, President Donald Trump announced a 90-day pause on most tariffs, leading to a historic surge in U.S. stock markets. The Dow Jones Industrial Average soared by nearly 3,000 points, closing at 40,608.45—a 7.9% increase.
The S&P 500 rose 9.5%, and the Nasdaq Composite jumped 12.2%, marking one of the most substantial single-day gains in recent history.
The tariff suspension applies to numerous countries, aiming to de-escalate ongoing trade tensions and provide a window for negotiations. However, tariffs on Chinese imports have been increased to 125%, reflecting continued strain in U.S.-China trade relations.
This move comes after a period of market volatility spurred by fears of an escalating trade war. The temporary relief has been welcomed by investors, with sectors like technology and manufacturing experiencing notable gains.
Despite the positive market response, analysts caution that the long-term impact will depend on the outcomes of forthcoming trade negotiations and the administration’s future tariff decisions.
