Market Recap: Wall Street Rebounds as Trump Pauses Tariffs – April 10, 2025

Major Indexes Surge Following Tariff Pause Announcement

U.S. stock markets experienced a significant rebound on Thursday, April 10, 2025, following Wednesday’s historic rally triggered by President Donald Trump’s announcement of a 90-day pause on most reciprocal tariffs. The market’s positive momentum continued as investors digested the implications of this policy shift, though some early profit-taking was evident.

As of market close, the S&P 500 added 1.2% to reach 5,520.45, building on Wednesday’s massive 9.52% gain, which marked its best day since October 2008. The Dow Jones Industrial Average rose 0.8% to 40,935.12, extending its previous 7.87% surge. Meanwhile, the tech-heavy Nasdaq Composite climbed 1.5% to 17,382.25, following Wednesday’s remarkable 12.16% jump – its second-best day in history.

Despite the recent gains, major indexes remain below their early April levels before Trump’s initial tariff announcements, with the S&P 500 still down approximately 2.5% from its April 2 close.

Tariff Policy Developments Drive Market Sentiment

The market’s dramatic recovery stems directly from President Trump’s unexpected policy reversal. On Wednesday, Trump announced a 90-day pause on most of his new “reciprocal” tariffs that had gone into effect at midnight, with the notable exception of China.

In a surprising move, Trump actually increased tariffs on Chinese imports to 125% from the previous 104% level, while simultaneously lowering duties on other countries. This decision came after China had announced significant retaliatory measures, including 84% tariffs on U.S. goods, matching the additional tariff the Trump administration had placed on the world’s second-largest economy.

Market analysts suggest this policy shift has temporarily alleviated fears of a global trade war that could have pushed the U.S. and global economies into recession this year.

Tech Giants Lead Market Recovery

The “Magnificent Seven” tech stocks were the primary drivers of the market’s rebound, poised to regain more than $1 trillion in market value after suffering collective losses of approximately $2.1 trillion since Trump’s April 2 tariff announcement.

Notable performers included:

– Nvidia (NVDA): Surged 18.72% on Wednesday and added another 3.2% today
– Tesla (TSLA): Jumped 22.69% yesterday and gained 2.5% in today’s session
– Apple (AAPL): Rose 15.33% Wednesday and climbed an additional 1.8% today
– Microsoft (MSFT): Added 2.1% today after yesterday’s gains
– Alphabet (GOOGL): Increased 7.9% Wednesday after reiterating plans to spend approximately $75 billion this year on data center capacity

These tech giants had been particularly vulnerable to tariff concerns due to their global supply chains and international revenue exposure. For example, 90% of Apple’s iPhones are manufactured in China, many Tesla electric vehicle components are sourced outside the U.S., and Nvidia products are imported from Mexico and Taiwan.

Upcoming Market Events

Investors are now shifting focus to the first-quarter earnings season, which begins in earnest this week. Banking giants JPMorgan Chase (JPM) and Wells Fargo (WFC) are set to lead the reporting season.

Thursday marks a particularly busy day for earnings reports, with 354 companies scheduled to release results. Analysts at FactSet estimate a year-over-year earnings growth rate of 7.3% for S&P 500 companies, which would mark the seventh straight quarter of year-over-year earnings growth for the index.

Key economic data releases in the coming days will also be closely watched for signs of how tariff uncertainties might be affecting the broader economy, particularly consumer spending and business investment.

Market Outlook and Analyst Perspectives

While the market’s dramatic recovery reflects relief over the tariff pause, analysts caution that underlying uncertainties remain. The 90-day timeframe suggests this is a temporary measure, and investors will be watching closely for developments in U.S.-China trade relations.

The volatility experienced over the past week highlights the market’s sensitivity to trade policy. The S&P 500’s 12.86% rebound from its recent low demonstrates both the severity of the initial selloff and investors’ willingness to quickly re-enter the market when policy uncertainty diminishes.

Sectors benefiting from reduced tariff concerns include consumer electronics, automotive, and semiconductor industries. However, companies with significant exposure to China may continue to face headwinds given the increased tariff rate specifically targeting Chinese imports.

Conclusion

Thursday’s market performance reinforces the dramatic shift in sentiment following Trump’s tariff pause announcement. While major indexes have recovered substantial ground, they remain below their early April levels, suggesting investors haven’t fully dismissed the potential for renewed trade tensions.

As earnings season begins and more economic data becomes available, market participants will gain better insight into how these policy shifts might impact corporate profits and economic growth in the coming quarters. For now, the pause in tariff escalation has provided welcome relief to a market that had been bracing for potentially severe economic consequences.