Market Recap: Wall Street Rebounds Amid Tariff Tensions – April 9, 2025

Major Indexes Stage Dramatic Recovery After Recent Selloff

U.S. markets staged a remarkable comeback on Wednesday, April 9, 2025, as investors appeared to find their footing after one of the most volatile trading periods in recent memory. The major indexes posted significant gains, reversing much of the losses experienced since President Trump announced sweeping tariffs last week.

The S&P 500 surged 8.11% to 5,386.91, while the Dow Jones Industrial Average jumped 6.94% to 40,259.18. The tech-heavy Nasdaq Composite led the rally with an impressive 10.16% gain to 16,818.24.

This dramatic rebound comes after the S&P 500 had lost 12.1% since Trump announced his intention to impose wide-ranging tariffs last Wednesday, bringing the index dangerously close to bear market territory—defined as a 20% drop from recent highs.

Tariff Tensions Continue to Drive Market Volatility

Today’s rally occurred despite escalating trade tensions, as the U.S. tariffs on 86 countries, including China, officially took effect at midnight. The measures include a 104% tariff on Chinese imports, up from the initially proposed 54%.

China responded by announcing retaliatory tariffs of 84% on U.S. imports starting April 10, up from 34%, while the European Union approved an initial set of trade countermeasures in response to U.S. duties on steel and aluminum.

The Bank of England warned that risks to the global and U.K. economy have intensified as a result of Trump’s latest tariffs, signaling a high possibility of “further sharp corrections” in markets. The British central bank noted that the recent announcements have “contributed to a material increase in the risks to global growth and a weakening of the central outlook.”

Tech Giants Lead Market Recovery

The “Magnificent Seven” tech giants, which had collectively lost an estimated $2.1 trillion since April 2, led today’s market recovery. NVIDIA (NVDA) shares soared 15.18%, while Tesla (TSLA) jumped 18.11%.

Apple (AAPL) shares rose 12.12%, helping the iPhone maker reclaim its title as the world’s most valuable company by market capitalization from Microsoft (MSFT). This is particularly notable as Apple had taken the sharpest blow among big tech stocks in the recent market drop, with its shares falling 23% over the previous four trading days.

Other tech giants also posted strong gains, with Palantir Technologies (PLTR) up 17.52% and Intel (INTC) rising 16.96%.

Delta Air Lines Soars on Strong Earnings

Delta Air Lines (DAL) was among the day’s top performers, with shares soaring 21.85% after the carrier’s fiscal first-quarter results came in better than analysts had expected. The strong performance came as Delta reported its earnings on the same day as several other companies, including Constellation Brands (STZ) and Simply Good Foods (SMPL).

Simply Good Foods shares jumped after the snack foods firm’s quarterly results topped estimates and it affirmed its full-year outlook despite tariffs uncertainty.

Pharmaceutical Sector Under Pressure

While most sectors rallied, pharmaceutical companies faced pressure after President Trump suggested the U.S. would soon announce “a very major tariff on pharmaceuticals.” Shares of several major pharmaceutical companies slumped, including AstraZeneca (AZN), Pfizer (PFE), and Eli Lilly.

Looking Ahead: Key Events to Watch

Investors are now turning their attention to upcoming economic data and earnings reports that could provide further insight into the market’s direction:

1. The March Consumer Price Index (CPI) is expected on Thursday, providing the next piece of key inflation data.

2. Big banks will lead off first-quarter earnings season, with JPMorgan Chase (JPM), Wells Fargo (WFC), and BlackRock (BLK) all scheduled to report on Friday.

3. CarMax (KMX) is set to report earnings on Thursday.

Market Outlook Remains Uncertain

Despite today’s rally, market analysts remain divided on whether the worst of the tariff-induced selloff is over.

JPMorgan Chase CEO Jamie Dimon said a U.S. recession would be a “likely outcome” as the Trump administration’s tariffs rattle markets.

The recent market volatility has been historic, with the S&P 500 experiencing its biggest three-day drop since World War II following Trump’s tariff announcement.

As one analyst noted, “If you look back through history some of the biggest short-term rallies have occurred during bear markets. Down markets tend to see very big sharp up moves because volatility does work in both directions.”

With tariff tensions continuing to escalate and important economic data on the horizon, investors should brace for continued volatility in the days ahead.