From Yahoo Finance: 2025-04-10 00:12:00

US stocks surged after President Trump announced a 90-day tariff pause, with the Dow Jones gaining nearly 3,000 points and the Nasdaq rallying 12%. Trump increased China’s tariff rate to 125%, prompting a positive market response. The S&P 500 soared 9%, its largest gain since 2008. Investors welcomed the news, seeking clarity amid trade war uncertainty.

Trump’s tariff pause followed backlash from billionaires, companies, and investors concerned about market volatility. Critics like Jamie Dimon and Bill Ackman warned of potential economic damage. The pause offers relief to investors, who see it as a step towards clarity. Trump raised China’s tariff rate to 125% due to a “lack of respect.”

Market analysts like Gina Bolvin of Bolvin Wealth Management Group praised the tariff pause as a positive step, providing companies with guidance for earnings season. The focus now shifts to trade deals with various countries, easing fears of recession and inflation spikes. The sudden pause in the trade war led to fluctuations in recession forecasts and boosted investor confidence.

The stock market’s immense rally on Wednesday defied expectations of volatility, fueled by trade war concerns. Recession fears eased with the tariff pause, allowing investors to focus on potential trade deals. China and the EU retaliated with tariffs, adding to market tensions. Treasury bond yields surged, testing investor confidence amid inflation and deficit worries.

Read more: Stocks soar 10% in a stunning rally after Trump pauses trade war