{UAH} WALL STREET SEES RECORD RALLY AFTER 90 DAYS PAUSE

Wall Street sees record rally after Trump announces 90-day pause on most tariffs — and raises China rate to 125%

By Taylor Herzlich

Published April 9, 2025, 9:29 a.m. ET

US stocks skyrocketed Wednesday after President Trump announced a 90-day pause on most of his so-called “reciprocal” tariffs — except for China, which he slapped with a 125% levy due to a “lack of respect.”

The Dow Jones Industrial Average jumped 2,962.86, or 7.9% — its largest one-day points gain on record — to close at 40,608.45 after Trump posted on Truth Social that he would delay the stiff tariffs following calls from more than 75 countries trying to negotiate.

“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump wrote on Truth Social, sending Wall Street soaringDD

The S&P 500 soared nearly 10% and the Nasdaq 100 jumped more than 12% as the major stock indexes reversed earlier losses from Wednesday morning, when investors panicked over China’s announcement to slap the US with an 84% retaliatory tariff.

“I think the hope from the outset — for most of the business community — was that Trump’s tariffs were a negotiating tactic, and that he would be willing to negotiate them down,” Alan Sykes, senior fellow at the Stanford Institute for Economic Policy Research, told The PostDD

“He’s reversing course to a certain extent, while at the same time still listening to the China hawks,” Sykes added.

Trump’s announcement comes after the Dow lost about 5,000 points over a week-long rout as investors panicked that Trump’s so-called “reciprocal” tariffs could reheat inflation and even trigger a recession.

The Dow Jones Industrial Average jumped up 2,271.05 points after Trump’s announcement.REUTERS

China’s staggering retaliatory tax spooked investors earlier Wednesday morning, as the hefty tariff threatened to cripple major companies at home that boast of “Made in the USA” products and send costs soaring along US supply chains.

“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump wrote in his post Wednesday afternoon.

President Trump last week unveiled his so-called “reciprocal” tariffs during his “Liberation Day” announcement.REUTERSADD

“At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”

Carol Schleif, chief market strategist at BMO Private Wealth, said Wednesday morning that investors are “waiting in the wings for the faintest whiff of constructive news on tariffs,” so the 90-day pause was a more-than-welcome reprieve for the markets.

On Tuesday, a brief morning rally saw the Dow jump by more than 1,400 points following reports of negotiations with foreign nations including South Korea, Japan, Indonesia and Vietnam. 

Those gains were completely wiped out by the afternoon, however, after the White House revealed its plans to raise the tariffs on China for a third time this year, with the Dow closing 320 points lower.

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