US stocks rebound strongly after Trump's decision to postpone tariffs for 90 days

Traders on the New York Stock Exchange floor on April 9 (Source: Reuters)

Specifically, on April 9, Mr. Trump decided to temporarily suspend the implementation of reciprocal tariffs on imports from most of the US's trading partners for 90 days to allow for trade negotiations with those countries. However, the general 10% tariff on most imported goods into the US remains in place.

However, this information also helped US stocks have a breakthrough trading session after many consecutive sessions of decline since Mr. Trump announced a new round of tariffs.

At the end of the trading session on April 9, the S&P 500 Index increased .52% to 5,456.90 points, the largest one-day increase since 2008. And the third largest increase in history after World War II. In which, all 11 major industry indexes of the S&P 500 increased, in which technology increased by 14.15%...

The Dow Jones Industrial Average rose 2,962.86 points, or 7.87%, to close at 40,608.45, its biggest gain since March 2020.

The Nasdaq Composite Index rose 12.16% to 17,124.97 points, also recording its biggest one-day gain since January 2001 and its second-biggest gain ever.

The Russell 2000 index of small-cap stocks rose 8.66%, its biggest one-day gain since March 2020.

Meanwhile, the CBOE Volatility Index (VIX) - Wall Street's "fear gauge" - fell sharply and ended the day at 33.62 points, compared to a session high of 57.96.

“This is the pivotal moment we have been waiting for. The immediate market reaction has been overwhelmingly positive, as investors see this as a step toward much-needed clarity,” said Gina Bolvin, president of Bolvin Wealth Management Group. “However, uncertainty still surrounds what will happen after the 90-day deadline, leaving investors to grapple with the potential for future volatility.”

Following Trump's pause announcement, Goldman Sachs said it was scrapping its recession forecast and returning to its previous baseline estimate of US economic growth through 2025.

Kevin Gordon, senior investment strategist at Charles Schwab, said the rally from oversold levels was justified. But he warned that “it would be foolish to make any firm decisions about anything right now.” “We just have to wait and see what the final policy is, but unfortunately, policy changes almost daily,” Gordon said, adding that he was concerned about companies’ ability to make spending and hiring decisions in such an environment.

Even with the rally, all three major Wall Street averages ended the session below their April 2 close, the last trading day before Trump announced the broad tariffs.

Also helping to soothe investor sentiment was the US Treasury Department ’s auction of $39 billion in 10-year Treasury notes, priced at a high yield of 4.435%, lower than forecast at the time of the auction, indicating solid investor demand.

“Longer-term questions almost certainly remain. But this afternoon’s announcement, combined with the Treasury auction, is a welcome relief after several days of very high volatility,” said Jeffrey Palma, director of multi-asset solutions and macro research at Cohen & Steers in New York.

Source: https://thoibaonganhang.vn/chung-khoan-my-phuc-hoi-manh-sau-quyet-dinh-hoan-thue-quan-90-ngay-cua-ong-trump-162539.html