 "Wall Street witnesses a historic jump after Trump's tariff reprieve, Asian markets track similar gains")
US Stock indexes posted their biggest one-day gains after US President Donald Trump declared a 90-day pause on the reciprocal tariffs against several nations around the world. The stock market witnessed a major surge, with the S&P 500 recording its largest rise since 2008.
Trump announced the pause on Wednesday afternoon after days of market turmoil, with bond prices and the US dollar selling off earlier in the day due to fears that the administration would raise tariffs at historic levels and push the country’s economy into recession. The president announced an immediate 90-day tariff pause for many countries even as he raised the levy on Chinese imports to 125 per cent.
The pause brought a major relief to the struggling market. The S&P 500 ended 9.5 per cent higher, while the Nasdaq rose 12.2 per cent in its biggest one-day gain since January 3, 2001, and its second-biggest on record. However, the investors argue that there is still uncertainty about the longer-term plans.
“This is the pivotal moment we’ve been waiting for,” said Gina Bolvin, president of Bolvin Wealth Management Group in Boston told Reuters. “The timing couldn’t be better, coinciding with the start of earnings season. However, uncertainty looms over what happens after the 90 days, leaving investors to grapple with potential volatility ahead,” Bolvin added.
How the Asian stock market reacted
The Asia-Pacific markets also rose on Thursday, mirroring Wall Street’s historic jump. Japanese markets led gains in the region with Nikkei rising 8.24 per cent, while the broader Topix index advanced 7.33 per cent. Meanwhile, South Korea’s Kospi index surged 4.8 per cent, while the small-cap Kosdaq gained 4.2 per cent.
Australia’s S&P/ASX 200 rose 5.09% in early trade. However, investors will be keeping a close eye on how Chinese markets will perform as US duties on imports from mainland China rose to 125 per cent. The tariff rise came after Beijing announced plans to retaliate with an 84% levy on American goods.
Impact Shorts
More ShortsMeanwhile, the Dow Jones Industrial Average advanced 2,962.86 points, or 7.87%, to close at 40,608.45 for its biggest percentage advance since March 2020.
With inputs from agencies.
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