Indices See their Best Day since 2008 as Trump Pauses Tariffs – US Market Wrap

Trump’s promise to pause tariffs on some trading partners sparked Wall Street’s biggest buying spree since 2008.

After narrowly avoiding a bear market, the S&P 500 staged a historic rebound from a selloff that wiped trillions of dollars from global share prices amid the threat of a full-fledged trade war that fuelled fears of a US recession. The equity benchmark rose 9.5%, the most since the global financial crisis, while the Nasdaq 100 rose 12% as euphoria gripped markets following four days of bruising, high-volume trading. Almost every stock in the major indexes rose.

Treasuries made a tentative return to normalcy as investors fled havens for fear of missing out on the massive risk rebound. Two-year US yields briefly rose above 4% as traders reduced expectations for Federal Reserve rate cuts this year.

Trump announced a 90-day moratorium on higher reciprocal tariffs, which hit dozens of trade partners after midnight, while raising tariffs on China to 125%. The market rose further on indications that he will consider tariff exemptions for some companies.

Given the volatility of previous sessions, some market watchers advised caution before reading too much into the bull case. Trump’s tariff threats may have caused long-term damage to corporate planning and harmed international relations to the point where global economic growth is no longer guaranteed.

The stock market recovered about three hours after Trump urged Americans to remain calm and continue investing, writing on social media that “this is a great time to buy.” Later, the president commented that the bond market is “beautiful right now.” It came after days of rising market stress in everything from money markets to credit spreads, as well as a chorus of calls from Trump’s billionaire allies to halt the implementation of his global tariff program.