Stocks spring higher, dollar gains as Trump announces tariff pause excluding China
Wed April 9, 2025 5:54 PM
Once again, Trump pulled an earth-shattering surprise but this time it was good news when he announced a 90-day pause on all the reciprocal tariffs that were to go into effect today, China being excepted where there was not only a pause but an increase to 125%. Until then it was a very quiet day compared to most with all the indexes straddling flat until 1:15 p.m. That had to be when the announcement was made and the market reacted with one of the biggest rallies in history, a single day gain on the Dow of over 2900, on the Nasdaq of over 1800.
The bond market took a major hit with a number of major countries, including China, dumping their holdings, a common signal of losing faith in the economy. That apparently was the trigger that prompted Trump’s reversal today, or as many experts have been quoted in this blog over the years – you want to know where the economy is headed, watch the bond market. That also means that all the investors who escaped to safe havens in recent days got stung today. The abiding question remains – how long will this last? Or as today’s expert put it, “Uncertainty looms over what happens after the 90-day period, leaving investors to grapple with potential volatility ahead.” Per the CBOE, volume came in at an earth-shattering 30.9 billion, establishing yet another all-time record vs Monday’s 29.4 billion.
DJ: 37,645.59 -320.01 NAS: 15,267.91
-335.35 S&P: 4,982.77
-79.48 4/8
DJ: 40,608.45 +2,962.86 NAS: 17,124.97 +1,857.06 S&P: 5,456.90
+474.13 4/9
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