Trump's tariff suspension boosts the stock market, S&P 500 surges 9.5%

On April 9, 2025, U.S. President Trump announced an immediate suspension of tariffs against multiple countries. This move successfully alleviated investors’ concerns that U.S. trade policies might lead to global economic uncertainties, prompting a significant rebound in the stock market. The S&P 500 Index rose by 9.5% during the day’s trading, marking the largest single-day gain since 2008, closing at 5,456.90 points.

Prior to this, Wall Street experienced the largest four-day drop since the outbreak of the COVID-19 pandemic. Trump's decision quickly bolstered market confidence. The suspended tariff policy applies to multiple countries and will remain in effect for 90 days. Although the White House still maintains a comprehensive 10% tariff on almost all imported goods, investors reacted positively to the short-term relief of the policy, and market sentiment clearly warmed up.

Gina Bolvin, President of Bolvin Wealth Management Group, stated: "This marks a key moment much awaited by the market, and investors generally see this as an important step towards more clearly defined policies. However, uncertainty beyond the 90 days remains, and investors need to be prepared for possible volatility."

Following Trump’s tariff suspension announcement, Goldman Sachs also withdrew its recession forecast, restoring its previous baseline expectation for U.S. economic growth in 2025. Nevertheless, the S&P 500 Index's closing level remained below that of April 2, the last trading day before Trump announced the comprehensive tariffs.

On the day, the Dow Jones Industrial Average rose by 7.87%, closing at 40,608.45 points; the Nasdaq Index increased by 12.16%, reaching 17,124.97 points, marking the largest rise since the dot-com bubble in 2001. The Russell 2000 Index of small-cap stocks rose by 8.66%, the highest single-day gain since March 2020. The strong performance of the technology sector contributed to the index's rise, with Nvidia up by 18.7% and Apple’s stock rising by 15.3%.

Additionally, the S&P 500 Auto Index surged by 20.95%, recording the largest single-day gain in history. A $39 billion 10-year bond issued by the U.S. Treasury also helped restore market sentiment, with an auction yield of 4.435%, below market expectations, indicating strong investor demand.

The Chicago Board Options Exchange Volatility Index, known as the "fear index," plummeted after Trump's tariff suspension announcement, closing at 33.62 points, having briefly surpassed a high of 57 points during the session. The Federal Reserve's meeting minutes were also released on the same day, showing policymakers' ongoing concerns about U.S. economic growth slowdown and inflationary pressures, anticipating potential "tough trade-offs" ahead.

Investors will look for clues about the inflation trajectory in the upcoming consumer price inflation report. Meanwhile, the earnings season will provide more information on the profitability of U.S. companies, particularly the potential impact of tariff policies on the economy. U.S. bank stocks, including JPMorgan Chase, are set to release their first-quarter earnings on Friday, and the market is eagerly awaiting these reports.

In individual stocks, Delta Air Lines' first-quarter profits exceeded expectations, with shares soaring 23.4%. However, the company lowered its financial forecast for 2025, predicting profits this quarter would fall short of market expectations.

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.