The trader works on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters
Wednesday’s amazing stock market rally on President Donald Trump’s astonishing tariff reversal is from a history book.
The S&P 500 surged 9.52% in knee response to Trump’s announcement. According to FactSet, daily profits ranked third in benchmarks for major stock markets since World War II.
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NASDAQ composites increased by 12.16%, reaching the largest one-day jump since January 2001 and the second day jump.
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“This is a pivotal moment we’ve been waiting for,” said Gina Volbin, president of Volbin Wealth Management Group. “The market response for the moment has been overwhelmingly positive as investors interpret this as a step towards much needed clarity.”
The market was a coiled spring after a brutal four-day stretch and then a brief thrust of the S&P 500 into Bear Market territory. Over the course of the previous four trading sessions, the S&P 500 suffered a 12% loss. This is a decline we haven’t seen since the pandemic. The Dow lost more than 4,500 points during the four-day stretch, while the Nasdaq fell by more than 13%.
The stock managed to recapture many of the losses, but investors aren’t entirely out of the woods as Trump vows to reorient global trade. The president said more than 75 countries contacted US officials for negotiations after announcing his new tariffs last week.
“It’s still too early to let the clear come out,” said Dave Sekera, chief US market strategist at Morningstar. “Trade negotiations have not yet begun. Once each party is located to extract the largest possible concessions, so there are positive and negative headings.”
