Trump's 90-day tariff pause led to third-largest market rally since World War II

From Nasdaq: 2025-04-10 09:46:00

President Trump’s tariff announcement caused a historic $6 trillion loss on Wall Street last week, raising recession odds. However, his 90-day tariff pause led to the third-largest market rally since World War II. The S&P 500 surged 9.52%, Dow Jones 7.87%, and Nasdaq 12.16%, giving investors relief amid ongoing trade tensions.

The Magnificent 7 tech giants, including Tesla, NVIDIA, Amazon, Apple, Microsoft, Alphabet, and Meta Platforms, saw significant stock jumps following the market rally. Despite this, caution is advised due to Trump’s unpredictable policy shifts and ongoing trade war uncertainties.

While the tariff pause provided temporary relief, underlying trade tensions persist, especially with China. Goldman Sachs, previously predicting a recession, now expects 0.5% GDP growth with a 45% recession chance. The pause isn’t a cure-all, and the economic fallout from tariffs remains a concern.

Tesla’s stock surged 23% post-rally, adding $36 billion to Elon Musk’s net worth. However, competition and challenges in the EV market raise concerns. NVIDIA rose 19%, benefiting from AI chip dominance and cloud demand. Amazon, Apple, Microsoft, Alphabet, and Meta Platforms also saw gains.

Despite the rally, volatility is expected to continue. Amazon’s strong performance in logistics and cloud is promising, but AI monetization challenges persist. Apple faces tariff threats and flatlining iPhone sales, while Microsoft’s AI leadership and gaming momentum offer growth potential.

Alphabet’s search dominance and cloud growth are positive, but regulatory risks loom. Meta Platforms’ social commerce strength is notable, but monetization challenges remain. Investors should weigh opportunities against risks in the tech sector post-rally, considering long-term growth prospects and market uncertainties.



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