U.S. President Donald Trump announced that he would suspend mutual tariffs for 90 days for all countries except China, leading to a record rally in the New York stock market on the 9th (local time).
On that day, the Dow Jones Industrial Average rose by 2,962.86 points (7.87%) to close at 40,608.45. The Standard and Poor's 500 Index surged 474.13 points (9.52%) to close at 5,456.90, and the tech-heavy NASDAQ Index jumped 1,857.06 points (12.16%) to finish at 17,124.97.
President Trump noted in a post on Truth Social that he would suspend mutual tariffs for 75 countries for 90 days and impose only a basic tariff of 10% during this period. In contrast, he stated that tariffs on China would be raised significantly to 125%.
Immediately after this announcement, from 1:18 p.m., the three major indices of the New York stock market showed a vertical rise, with the daily increase recorded as one of the highest levels since World War II.
According to FactSet, the daily increase in the S&P 500 Index was the third largest since the global financial crisis on Oct. 13, 2008 (11.58%) and Oct. 28, 2008 (10.79%), while the NASDAQ Index recorded its largest increase since Jan. 3, 2001 (14.17%).
In particular, large tech stocks that had experienced significant declines due to the mutual tariffs surged all at once. Apple rose by 15.33% to regain the top position in market capitalization, while Tesla skyrocketed by 22.60%. Stocks of top “big tech” companies, including Nvidia (18.59%), Meta (14.55%), and Amazon (11.98%), also saw double-digit increases.
The stock price of Trump Media, in which President Trump is a major shareholder, also rose by 21.67% on that day. In the early trading session, Trump left a post on Truth Social, stating, 'Now is truly a great time to buy!!! DJT,' raising investors' expectations. DJT is Trump's initials as well as the stock code for Trump Media.
Dan Ives, a Wedbush securities analyst, said, 'This action provided desperate relief for tech stocks,' noting, 'Although China remains an uncertain variable in terms of Apple and extensive supply chain issues, it was an action that lifted the entire market from the brink of a cliff.'