The US stock on Wednesday increased after President Donald Trump announced a 90-day stagnation on some mutual tariffs, a step that sent the markets to a historic rally.
Reports of tariff shift came in the same way as Wall Street was eagerly waiting for any signal of change in the President’s trade policy, which had previously sent the markets to the upheaval.
Trump’s announcement, which authorized a temporary stop for most tariffs with the exception of those against China, promoted immediate bounce in American markets.
Dow Jones Industrial Average touched the sky by 2,963 points or 7.87%. The S&P 500 increased by 9.52%, while the technology-enhanced Nasdaq increased by 12.16%.
The rally marked one of the most important single-day rebels in the recent memory. S&P 500 posted its best day since October 2008, and Nasdaq was its best day since January 2001. Dow experienced his best performance in five years.
Comprehensive market profit
The rally was widespread, seeing the benefits with almost every company in S&P 500. Amazon saw a significant increase of 11.98%, while Nike increased by 11.36%. The airline shares led the charge, with United Airlines increased by 26.14%, followed by delta air lines 23.38%and American Airlines, which increased by 22.6%.
On Nasdaq, Tech veterans also enjoyed significant benefits, growing up to 15.33%with Apple, increasing to 18.72%, Palaantir achieved 19%, and Tesla saw an increase of 22.69%.
S&P 500, which was recently on the verge of entering the bear market area, is now at least 12.86% above its recent, although it is 3.7% below its peak on 2 April just before the announcement of tariff changes. Nasdaq is 2.7% below that date.
A unstable path for clarity
Trump’s move marked a change in the unstable trajectory of the US trade policy. For weeks, investors were on the shore as the President extended the trade war with China, put heavy tariffs on Chinese goods. However, his new declaration provided very important clarity for Wall Street, and investors gave the opportunity to buy stocks at concessional prices.
After the announcement, Trump said in a social media post, “The markets are very good right now.” “Stay calm! It’s a great time to buy !!!”
Nevertheless, the US-China trade struggles as uncertainty are unresolved. China is still subject to 125% tariffs on its goods, above 104%, and other tariffs, including 10% universal duties on all American imports.
Global market response
International markets initially reacted negatively to the increase of tariffs. Japan’s Nikkei index closed down 4%, while South Korea’s Kospi index entered the beer market area, falling 20% from its peak. However, oil prices were recovered after Trump’s announcement, with US oil already increased by 4.65% to $ 62.35 per barrel.
The UK stock markets on Thursday made a strong profit even after President Donald Trump’s announcement of tariff’s 90-day suspension on most countries except China. The FTSE 100 index increased by more than 6% as global markets gave positive response to the news of tariff delay, marking an important rebound in investor trust.
However, the break still leaves 10% tariffs for countries affected by tariffs including the UK, which was already subject to universal 10% rate. Meanwhile, the import of steel, aluminum and cars in the US is subject to 25% tariffs.
The UK’s response to Trump’s tariff policy has been cautious. Tariff suspension, with not removing taxes on American imports, ministers have emphasized the importance of careful interactions.
Cooper insisted that the UK would continue to advocate to reduce trade obstacles and seek beneficial trade agreements. “We want to see a decrease in business obstacles and we want to interact on good arrangements in the interests of the UK,” he said.
Despite the positive market movement, the UK ministers focus on future talks. Chancellor Rachel Reeves plans to visit Washington in late April to discuss the spring of the International Monetary Fund.
Trump’s influence on bond market
Trump also accepted the role of Bond Market in his decision to stop the tariff. “I was watching the bond market. The bond market is very difficult,” he said. Despite some signs of instability, he postponed the recovery of the market, “Bond market is still beautiful.”
In the US Treasury Bond, investors had sold significant amounts in recent times, concerned about the implications of the ongoing trade struggle. Duthe Bank analysts said it could indicate weakening of the demand for American -backed assets, which could affect the country’s ability to manage major budget deficit.
