The Donald Trump administration indicated that it could further extend the deadline for the suspension of reciprocal tariffs, which expires on the 8th of next month (local time), leading to a strong close for the three major indices of the New York stock market. The S&P 500 index even set a new intraday high.
On that day, the Dow Jones Industrial Average closed up 404.41 points (0.94%) at 43,386.84. The Standard and Poor's (S&P) 500 index ended 48.86 points (0.80%) higher at 6,141.02, while the tech-focused Nasdaq Composite index rose 194.36 points (0.97%) to close at 20,167.91.
The S&P 500 index reached 6,146.52 during the day, coming close to breaking the intraday record of 6,147.43 set on February 29. The Nasdaq index also approached its intraday high of 20,204.58 set on December 16 of last year.
The market reacted positively to the White House briefing indicating the possibility of extending the deadline for the reciprocal tariff suspension. Spokesperson Caroline Levitt noted regarding the extension, "It could probably be extended," adding, "It’s a decision the president will make."
The Trump administration enacted reciprocal tariffs on 57 countries on April 9, before deciding to suspend them for 90 days, excluding China, which is set to expire on the 8th of next month. The White House implied that this could be further extended.
Some tech stocks also showed strength. Nvidia climbed 4.3% the previous day, reclaiming the top market capitalization position, and rose another 0.5% that day, hitting a new all-time high within a day.
Meanwhile, as speculation arose that Trump could nominate a successor to Jerome Powell, the chairman of the Federal Reserve, earlier, U.S. government bond yields fell. This was due to increased expectations for early interest rate cuts. In contrast, the value of the U.S. dollar dropped to its lowest level in over three years.