Dow Jones soars nearly 3,000 points as market cheers tariff reversal
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In a historic trading session, the Dow Jones Industrial Average surged by nearly 3,000 points, gaining 7.87% after President Trump announced a sweeping 90-day suspension on reciprocal tariffs — with the notable exception of China. This unexpected policy pivot ignited a broad-based rally that saw the S&P 500 notch its best single-day performance since the 2008 financial crisis and pushed the Nasdaq Composite to a staggering 12.1% gain, its strongest since 2001.
The catalyst came via a single Truth Social post in which Trump stated that reciprocal tariffs on most countries would be paused and reset to a substantially reduced 10% rate. Markets responded with unrestrained optimism, brushing aside the exclusion of China from the deal. Instead, investors zeroed in on the opportunity to scoop up beaten-down stocks now perceived as undervalued, especially those previously impacted by tariff-related concerns.
While the tariff easing was presented as part of a long-term strategic plan by Treasury Secretary Scott Bessent, the timing of the reversal caught many by surprise. Bessent clarified that countries such as those in the European Union would benefit from the 10% baseline rate, effectively reversing the recently imposed 20% rate due to the EU’s delayed retaliatory measures. China, however, remained the target of intensified trade pressure, with U.S. tariffs on Chinese goods hiked to 125% following Beijing’s own move to raise duties to 84%.
Markets broadly rallied on the news. The S&P 500 climbed 9.5%, its most aggressive daily gain in over 15 years, while the Nasdaq's rally reflected renewed confidence in tech and high-growth sectors previously hampered by protectionist policies. Traders appeared to interpret the tariff rollback as a signal that worst-case trade war scenarios may be softening — at least for now.
As the dust settles, attention will turn to whether this market momentum can be sustained. Key factors to watch include the durability of Trump’s tariff suspension, the evolving trade dynamic with China, and whether the sharp bounce marks a structural recovery or a sentiment-driven repricing. Either way, the day marked a turning point in recent market sentiment, driven less by fundamentals and more by political signaling — with powerful effects across global equity benchmarks.
The catalyst came via a single Truth Social post in which Trump stated that reciprocal tariffs on most countries would be paused and reset to a substantially reduced 10% rate. Markets responded with unrestrained optimism, brushing aside the exclusion of China from the deal. Instead, investors zeroed in on the opportunity to scoop up beaten-down stocks now perceived as undervalued, especially those previously impacted by tariff-related concerns.
While the tariff easing was presented as part of a long-term strategic plan by Treasury Secretary Scott Bessent, the timing of the reversal caught many by surprise. Bessent clarified that countries such as those in the European Union would benefit from the 10% baseline rate, effectively reversing the recently imposed 20% rate due to the EU’s delayed retaliatory measures. China, however, remained the target of intensified trade pressure, with U.S. tariffs on Chinese goods hiked to 125% following Beijing’s own move to raise duties to 84%.
Markets broadly rallied on the news. The S&P 500 climbed 9.5%, its most aggressive daily gain in over 15 years, while the Nasdaq's rally reflected renewed confidence in tech and high-growth sectors previously hampered by protectionist policies. Traders appeared to interpret the tariff rollback as a signal that worst-case trade war scenarios may be softening — at least for now.
As the dust settles, attention will turn to whether this market momentum can be sustained. Key factors to watch include the durability of Trump’s tariff suspension, the evolving trade dynamic with China, and whether the sharp bounce marks a structural recovery or a sentiment-driven repricing. Either way, the day marked a turning point in recent market sentiment, driven less by fundamentals and more by political signaling — with powerful effects across global equity benchmarks.