In short: The White House announced a 90-day pause on most of the sweeping tariffs announced the previous week. Markets, which had been pricing in a prolonged global trade war, immediately reversed. The S&P 500 gained roughly 9% — one of the largest single-day gains in decades. The Nasdaq surged over 12%.
Shortly after markets opened on April 9, 2025, President Trump announced via Truth Social that he was authorizing a 90-day pause on most of the reciprocal tariffs announced on April 2. The pause applied to most US trading partners, with a notable and significant exception: China. US tariffs on Chinese goods were simultaneously raised to 125%.
The announcement came after days of intense market volatility, rising Treasury yields (an unusual "risk-off" signal suggesting stress in the bond market), and mounting pressure from business leaders and trading partners. The pause was interpreted as a signal that the administration was sensitive to market and economic feedback.
The stocks hardest hit in the preceding selloff rebounded the sharpest:
While the pause was broadly positive, China was excluded. US tariffs on Chinese goods rose to 125%, keeping pressure on companies with significant China manufacturing or revenue exposure. AAPL, which assembles most of its hardware in China, was a notable example of a stock that rallied but did not fully recover its losses.
This rally followed one of the sharpest short-term selloffs in years. For background on what caused the preceding crash, see: Why Did the Stock Market Crash in Early April 2025?
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