President Trump’s tariff reversal announcement sparked a historic stock market comeback on Wednesday April 9th. As many countries move toward fairer trade agreements with the USA, China still remains in the crosshairs, targeted with a staggering 125% tariff rate.

Key points:

• Dow Jones Industrial Average skyrockets by 7.87%, posting its largest one-day gain since March 2020.
• S&P 500 surges 9.52%, marking its biggest rally since 2008.
• Nasdaq Composite jumps 12.16%, its second-best day ever.
• President Trump announces 90-day tariff pause for most nations but raises China’s rate to 125%.
• Historic trading volume recorded as investors rush back into the market.

Greatest stock market rally in 18 years

In what analysts are calling one of the most dramatic market rebounds in history, U.S. stocks exploded upward Wednesday after President Donald Trump announced a major reversal in trade policy, temporarily easing tariffs on most nations while escalating economic pressure on China. The unexpected move sent shockwaves through global markets, triggering a historic surge in equities as investors rushed to buy back into previously battered sectors.

Wall Street saw its heaviest trading volume in 18 years on Tuesday, with roughly 30 billion shares exchanged, as investors scrambled to respond to President Trump’s latest tariff pivot. The volatility came after Trump declared a 90-day pause on reciprocal tariffs — except for China — while escalating tensions with Beijing to unprecedented levels.

In a Truth Social post, Trump announced: “I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” Simultaneously, he raised tariffs on Chinese goods to a staggering 125%, further inflaming the trade war that has rattled markets since 2018.

Treasury Secretary Scott Bessent later clarified that the 10% baseline rate would apply to all nations except China, where negotiations remain tense. Sector-specific tariffs, however, were excluded from the pause.

The president’s abrupt shift followed weeks of back-and-forth measures. Just days earlier, Trump had threatened 100 billion in tariffs after China countered his 15 billion move with $50 billion in retaliation — a pattern echoing the 2019 escalation that tanked global growth forecasts.

A strategic pause, but China remains in the crosshairs

Just days after imposing aggressive reciprocal tariffs that sent markets spiraling, President Trump declared a 90-day “pause” in tariffs for over 75 countries, reducing rates to a universal 10% while negotiations continue. However, Beijing was notably excluded — Trump simultaneously raised tariffs on Chinese goods to an unprecedented 125%, accusing the Communist regime of undermining global markets.

“Given how depressed stock prices and sentiment had become, the 90-day pause is sparking a violent rebound,” said Adam Crisafulli, founder of Vital Knowledge. “But tariffs are not going away. China’s tariff rate is now in triple-digit territory, and who knows what happens in 90 days when this pause concludes.”

The announcement sent battered stocks soaring. Apple (+15%), Nvidia (+19%), and Tesla (+22%) led the charge, reclaiming billions in lost market value. Retailers like Wayfair (+20%), Levi Strauss (+18%), and Walmart (+9.6%) also surged as investors bet on eased supply chain pressures.

A return to 2008-level market optimism

The sheer scale of the rally was staggering—30 billion shares traded hands, the highest volume in 18 years—and mirrored the euphoric market rebounds seen after the 2008 financial crisis and the 2020 pandemic crash. Analysts say the sharp reversal reflects not just relief over reduced trade barriers but also confidence in Trump’s aggressive stance against China, long accused of unfair trade practices.

“This was his strategy all along,” said Treasury Secretary Scott Bessent, defending the sudden policy shift. “You might even say he goaded China into a bad position.”

As tensions escalate, economists warn of potential long-term disruptions — particularly if China retaliates further. Yet for now, markets are celebrating a rare reprieve, at least for now.

Sources include:

CNBC.com

CNBC.com

Enoch, Brighteon.ai