Thursday’s jump came as Trump paused higher tariffs on all countries, except China, where he increased the levy to 125%, amid mounting concerns from global leaders and recession fears.
The memes were flowing as stocks saw their biggest gain in years after Trump hit paused on the trade war for 90 days.
The stock market was soaring and the sun was shining when President Donald Trump stepped out of the Oval Office on Wednesday afternoon. Less than two hours earlier, he had retreated from his plans to increase tariffs on many U.S. trading partners, and investors were rejoicing after bracing for a global economic meltdown. “You’ve got the markets seeing your brilliance,” Sen. John Barrasso, a Republican from Wyoming, told the president.
Asian shares followed the US trend and surged overnight with Japan’s benchmark jumping more than 2,000 points almost immediately after the Tokyo exchange opened, as investors welcomed President Donald Trump ’s decision to back off on most of his tariffs.View on euronews
The searing selloff in Treasuries this week in response to tariffs caused dislocations in the world’s biggest bond market, as hedge funds unwound some debt-fuelled bets and investors raised concerns about lasting damage to U.S. markets. While the market participants, who include brokers, traders and investors, said the selloff was orderly, indicators such as bid-ask spreads -- or the difference between buyers' and sellers' asks -- were widening on Wednesday. One trading desk said the bid-ask spread was double its normal levels.
Stocks staged an enormous rally after Trump announced a tariff pause. The Nasdaq soared 12% for its best day since 2001. The Dow rose 3,000 points.
U.S. consumer prices unexpectedly fell in March amid cheaper gasoline and used motor vehicles, but the benign inflation reading is unlikely to be sustained after President Donald Trump doubled down on tariffs on imported Chinese goods. The first monthly decline in prices in nearly five years, reported by the Labor Department on Thursday, also suggested softening demand amid heightened recession fears due to tariffs, and led financial markets to anticipate the Federal Reserve could cut interest rates by 100 basis points this year. Delta Air Lines this week said travel demand had "largely stalled."
Bond markets in flux as the trade war deepens. The 10-year Treasury touched its highest level since Trump entered office this year.
The U.S. dollar weakened against the yen, Swiss franc and euro on Thursday but also against more risk sensitive currencies such as the Australian dollar, as markets digested President Donald Trump's dramatic reversal on tariffs. Trump stunned financial markets on Wednesday by walking back steep duties on trading partners that had gone into effect less than 24 hours earlier. The U.S. dollar rebounded sharply against the safe-haven Swiss franc and Japanese yen on Wednesday, while Wall Street's main stock indexes leaped as the tariff reprieve brought some relief to investors.
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