Markets Surge as President Trump Announces 90-Day Tariff Pause
- NexxtGen Markets
- Apr 10
- 2 min read
Here’s your latest update from the team at NexxtGen Markets here in the City of London.
Global Markets Experience Historic Rally Following Tariff Suspension
On Wednesday, April 9, 2025, global financial markets experienced a significant surge after U.S. President Donald Trump announced a 90-day suspension of new tariffs recently imposed on numerous countries. This decision reversed a series of steep tariff hikes that had previously triggered a global stock selloff and volatility in bond markets.
U.S. Markets Soar to Record Gains
The U.S. stock market responded with unprecedented gains:
S&P 500: Surged by 9.5%, marking its most substantial daily gain since 2008.
Dow Jones Industrial Average: Jumped 2,962.86 points to close at 40,608.45.
Nasdaq Composite: Soared by 12.2%, reflecting a significant rebound in technology stocks.
European and Asian Markets Reflect Positive Sentiment
The optimism extended beyond U.S. borders:
European Markets: Major indices, including the EUROSTOXX 50 and Germany's DAX, posted significant gains, buoyed by the easing of trade tensions.
Asian Markets: Japan's Nikkei index experienced a substantial uptick, reflecting investor relief in the region.
Bond Markets and Commodities Respond
The bond market showed signs of stabilisation after recent volatility, with 10-year Treasury yields adjusting to the news. Commodities presented a mixed response:
Oil Prices: Declined, reflecting ongoing concerns about global demand amid trade uncertainties.
Gold: Prices rose, indicating that some investors continue to seek safe-haven assets despite the positive market movements.
Ongoing Trade Tensions with China
Despite the broad tariff suspension, the U.S. administration maintained a 125% tariff on Chinese goods. In retaliation, China increased tariffs on U.S. imports to 84% and imposed new restrictions on 18 American firms. The onshore yuan declined to its lowest level since 2007, and the People's Bank of China set a historically low midpoint rate.
Investor Sentiment: Relief Tempered with Caution
While the tariff pause has provided a temporary reprieve, market analysts advise caution:
"The pause is a welcome development, but the underlying issues remain unresolved. Investors should remain vigilant as the situation evolves."
NexxtGen Markets Perspective
At NexxtGen Markets, we recognise the fluid nature of global trade dynamics. While the current rally offers opportunities, we advocate for a balanced approach:
Diversification: Ensure portfolios are well-diversified across sectors and geographies to mitigate risks associated with trade tensions.
Stay Informed: Keep abreast of policy developments that could impact market conditions.
Long-Term Focus: Maintain a long-term investment perspective, avoiding reactive decisions based on short-term market movements.
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