US stocks make historic recovery after Trump's reciprocal tax changes

Wall Street was on edge earlier, waiting for any signs that US President Donald Trump might change his approach to punitive tariffs, CNN reported.

So when President Trump posted on Truth Social that he was suspending most reciprocal tariffs, investors immediately rushed to buy stocks.

US stocks immediately bounced back, creating a historic recovery.

The Dow Jones Industrial Average jumped 2,963 points, or 7.87%. The S&P 500 gained 9.52%. The tech-heavy Nasdaq jumped 12.16%.

For the S&P 500, the index recorded its strongest increase since October 2008. This was also the third best day of increase in the history of the S&P 500 since 1957.

The Nasdaq had its biggest gain since January 2001 and its second-best day on record. The Dow Jones also recorded its biggest gain in five years.

The development comes as President Trump said he has decided to suspend tariffs for 90 days and impose a significantly lower reciprocal tariff of 10% during this time.

In a post on the Truth Social social network, Mr. Trump wrote: “Given the fact that more than 75 countries have reached out to representatives of the United States — including the Department of Commerce, the Department of the Treasury , and the Office of the United States Trade Representative (USTR) — to negotiate solutions related to trade, trade barriers, tariffs, currency manipulation, and other non-tariff barriers, and that these countries, at my strong request, have not retaliated against the United States in any way, I have authorized a 90-day suspension of tariffs and a significantly reduced reciprocal tariff of 10% during this time, also effective immediately.”

In addition, President Trump also said he would sharply increase tariffs on Chinese goods, raising the tax rate to 125%, in a strong effort to pressure Beijing to join the negotiations.

The move comes as Trump’s new tariff policy is causing major fluctuations in the global economy . The decision was made just hours after China announced it would raise tariffs on US goods to 84%, and exactly half a day after Washington’s tariffs on most of its trading partners officially took effect.

US Commerce Secretary Howard Lutnick posted on social media that he and Treasury Secretary Scott Bessent watched President Trump post on Truth Social, calling it one of the most special posts of Trump's tenure.

For his part, Mr. Bessent said that President Trump's decision to temporarily suspend tariffs was not a random move to disrupt the global economy, but part of a long-term strategy to encourage countries to enter negotiations.

Previously, on April 2, US President Donald Trump announced new tariffs with more than 180 countries and territories.

Accordingly, the US began imposing a 10% base tax on almost all of its trading partners, effective from April 5.

In addition, from April 9, imported goods from about 60 countries implementing tariff and non-tariff barriers on US goods will be subject to reciprocal taxes ranging from 10% to 49%.

US Treasury Secretary Scott Bessent said on April 7 that about 50-60, even up to 70 countries and territories have contacted the US to negotiate before the US's reciprocal tax policy takes effect from April 9.

Source: https://hanoimoi.vn/chung-khoan-my-phuc-hoi-lich-su-sau-thay-doi-ve-thue-doi-ung-cua-tong-thong-trump-698434.html