From Yahoo Finance: 2025-04-09 00:02:00

Stocks surged to one of their biggest gains since World War II after President Donald Trump paused his tariffs against most other nations, as investors had desperately hoped he would. The S&P 500 soared 9.5%, Dow Jones Industrial Average flew nearly 3,000 points higher, and Nasdaq composite jumped 12.2%.

Trump raised tariffs further on China, but said he doesn’t expect to increase them again. He calculated the situation carefully and doesn’t anticipate needing to raise tariffs to get China to the negotiating table.

Treasury Secretary Scott Bessent explained that the market turmoil arose because investors didn’t understand Trump’s tariff strategy. He said the maximum tariffs were to create negotiating leverage for the U.S. and pressure China.

China retaliated with 84% tariffs on U.S. goods to match Trump’s 50% tariff increase. The Ministry of Commerce vowed to fight to the end if the U.S. continues escalating economic and trade restrictions.

Beijing issued a travel advisory for its citizens to consider the risks of visiting the U.S. due to the trade tensions. The advisory cited the deteriorating economic and trade relations between China and the U.S. as a reason for caution.

European Union imposed retaliatory tariffs on $23 billion in U.S. goods in response to Trump’s steel and aluminum tariffs. The EU stated that the tariffs were unjustified and damaging, causing economic harm to both sides and the global economy.

Walmart withdrew its first-quarter profit view amid tariff uncertainty. The retail giant maintained its full-year sales outlook but walked away from its first-quarter operating profit guidance due to the risks of tariffs.

Trump promotes investing in the U.S. as an antidote to higher tariffs. He said companies that come back to America will have zero tariffs, encouraging them to move their operations to the United States.

China used a WTO meeting to criticize Trump’s tariffs, accusing the U.S. of setting the global trading system ablaze. The Chinese envoy at the meeting said the tariffs infringed on countries’ right to develop and contravened WTO rules.

Pharma shares tumbled after Trump announced tariffs on pharmaceuticals to bring medication production back to the U.S. Shares of Eli Lilly, Pfizer, Merck, and Johnson & Johnson dropped in response to the announcement.

Read more: S&P 500 soars 9.5% to one of its biggest gains since WWII after Trump limits tariffs