Stocks soar as Trump pauses tariffs, aiming for trade deals with allies

From Nasdaq: 2025-04-09 14:18:00

Stock indexes surged higher today, with the S&P 500, Dow Jones, and Nasdaq all posting gains. President Trump’s plans to increase tariffs on China to 125% but impose a 90-day pause on other reciprocal tariffs boosted markets. Tariffs on EU and Japan also escalated, but the US aims for trade deals with allies.

Comments from Fed President Kashkari on tariffs and a rise in 10-year T-note yields affected stocks and bonds. Mortgage applications rose by 20%, with rates falling to a 5-1/2 month low. Concerns over US tariffs impacting economic growth have pressured markets, with the possibility of a -25 bp rate cut after the FOMC meeting.

US banks kick off Q1 earnings season, with expectations for S&P 500 earnings growth at +6.7%. Overseas markets show mixed performance, with Euro Stoxx down sharply but China’s Shanghai Composite up. Interest rates fluctuate, with T-notes falling to a low as trade policy uncertainty persists.

ECB members signal potential rate cuts due to US tariffs’ impact on global markets. Market movers include Tesla, Apple, and chip makers like Nvidia. Airline stocks rise on Delta Air Lines’ positive earnings, while pharmaceutical stocks decline on news of potential tariffs.

Homebuilders and energy stocks face pressure as T-note yields rise and crude oil prices drop. Walmart leads gainers in the Dow Jones after reaffirming sales forecast. Gold mining stocks climb alongside rising gold prices. Earnings reports for April 9 include companies like Constellation Brands and Delta Air Lines.



Read more at Nasdaq: Stocks Spike as Trump Announces 90-Day Tariff Pause