Wall Street Rebounds Sharply as Trump Softens Tariff Stance

[Social Media]

 

Wall Street Rebounds Sharply as Trump Softens Tariff Stance

 

U.S. stocks experienced a dramatic rebound after President Donald Trump unexpectedly announced a reversal on steep tariff hikes, choosing instead to implement a 10% universal import tax. The announcement sparked a surge across financial markets, marking one of the biggest rallies in recent years.

 

The decision comes just a day after new tariffs had taken effect, targeting key U.S. trade partners including Vietnam, which had been hit with a sharp 46% levy. These measures, unveiled by Trump the previous week, were broader and more severe than expected, triggering a steep selloff in equities and a wave of recession fears both domestically and abroad.

 

In a significant shift, the White House stated that higher tariffs would be paused for countries open to negotiation. However, Trump maintained a hard line on China, stating that tariffs on Chinese goods would rise “effective immediately” to at least 125%.

 

 

The market responded with enthusiasm. The S&P 500 soared 9.5%, notching its largest single-day gain since the 2008 financial crisis. The Dow Jones Industrial Average climbed more than 7.8%, while the Nasdaq surged over 12%. Companies heavily reliant on Asian manufacturing, such as Nike and Apple, saw notable gains of 11% and 15% respectively.

 

The market’s dramatic turnaround followed days of intense volatility. Prior to Trump’s pivot, fears of an economic downturn had spilled over into the bond market, with investors dumping U.S. government debt in anticipation of a prolonged trade war.

 

“Although President Donald Trump was able to resist the stock market sell-off, once the bond market began to weaken too, it was only a matter of time before he folded,” said Paul Ashworth, chief North America economist at Capital Economics.

 

Ashworth suggested that the president’s retreat reflects a return to his original campaign promise of a broad 10% tariff across the board, but warned that resolving tensions with China will be a lengthy process. “It is difficult to see either side backing down in the next few days,” he said. “But we suspect that talks will eventually happen, although a full rollback of all the additional tariffs applied since Inauguration Day appear unlikely.”

 

Despite the day’s bullish rally, major indexes remained below pre-tariff levels. The S&P 500 was still down about 3% from last week and over 8% year-to-date. Tariffs on Chinese goods continue to loom large over the economy, with China accounting for more than $400 billion in U.S. imports last year, including 60% of footwear and 36% of apparel, according to the American Apparel and Footwear Association.

 

Prior to the policy shift, the National Retail Federation had warned that shipping traffic through U.S. ports could fall 20% in May compared to the previous year.

 

Following his announcement, Trump expressed optimism about reaching a deal with China and floated the possibility of granting tariff exemptions to certain companies, an approach that contrasts with his previously hardline stance. “I saw last night where people were getting a little queasy,” Trump said, acknowledging market unease while reiterating his intent to maintain tariffs on sectors such as autos, steel, aluminium, and possibly pharmaceuticals and lumber.

 

Political pressure is believed to have played a role in Trump’s sudden change of course. Influential backers like Tesla’s Elon Musk, hedge fund billionaire Bill Ackman, and Barstool Sports founder Dave Portnoy had urged the president to reconsider his tariff strategy.

 

The about-face even surprised major financial institutions. Just before Trump’s announcement, Goldman Sachs released a report warning of a potential recession due to escalating tariffs. Mere hours later, the bank revised its outlook, still predicting minimal economic growth for the year and putting the chances of recession at 45%, despite the softened policy.

 

Ackman, who had previously called for a 90-day tariff moratorium, praised the president’s decision. “Thank you on behalf of all Americans,” he wrote on social media.

 

Based on a report by BBC  2025-04-10

 

 

[Gsxrnz]

This is the "hug", following his two punches in the face style of negotiation. 

 

Next will be an invitation to Chayna to provide their own vaseline, and be rewarded with a reach around. 

[bkk6060]

Certainly a lesson for those who try to time the market.  How many sold thinking it was continuing way down?  

Stay the course and you will be rewarded in the long run.

[Woke to Sounds]

Never sell into a storm folks.

 

Some great bargains right now.

 

Load em up.

[impulse]

In the immortal words of Homer Simpson:  Doh.

 

[simple1]

46 minutes ago, Woke to Sounds said:

Never sell into a storm folks.

 

Some great bargains right now.

 

Load em up.

 

Especially for those in the "inner circle". Be interesting to read who made significant trades in the hours before the announcement.

[placeholder]

From the article:

“Although President Donald Trump was able to resist the stock market sell-off, once the bond market began to weaken too, it was only a matter of time before he folded,” said Paul Ashworth, chief North America economist at Capital Economics.

 

Usually when the stock market  crashes, investors cash out and put their money into T-bills. This time they were cashing out of T-bills as well and putting their cash into Japanese govt bonds and into bonds of other rationally governed countries instead. Not exactly a vote of confidence in the USA.

[jerrymahoney]

1 hour ago, Social Media said:

In a significant shift, the White House stated ...

Get with the program. That was the plan all along. Karoline Leavitt said so.

 

But per NY Times:

 

White House officials repeatedly tried to suggest that today’s change in policy was a premeditated strategy designed to secure favorable deals.

 

But Trump himself acknowledged that his decision was made in response to the market turmoil, particularly in the bond market. “You have to be flexible,” the president said. “Over the last few days, it looked pretty glum.”

 

[kwonitoy]

 

[steven100]

crooks and thief's comes to mind .....            

 

 

anyone who thinks this wasn't a plan for Trump & cronies to make billions is either very naive or just plain stupid. 

[bamnutsak]

So the "Golden Age" of America is delayed by 90 days?

 

Millions of Americans will have to wait 90 days to report to the factories.

 

 

White House on Monday - "There will not be a pause".

 

White House on Wednesday - "There will be a pause."

 

 

[jerrymahoney]

2 minutes ago, bamnutsak said:

White House on Monday - "There will not be a pause".

 

White House on Wednesday - "There will be a pause."

From the (much maligned on here) letter from 23 Nobel Prize economists 23 OCT 2024:

 

Among the most important determinants of economic success are the rule of law and  economic and political certainty, and Trump threatens all of these.

 

[bamnutsak]

1 minute ago, jerrymahoney said:

Among the most important determinants of economic success are the rule of law and  economic and political certainty, and Trump threatens all of these.

 

Shades of the Monty Python skit: "Spanish Inquisition".

 

 

[pomchop]

1 hour ago, bkk6060 said:

Certainly a lesson for those who try to time the market.  How many sold thinking it was continuing way down?  

Stay the course and you will be rewarded in the long run.

define "long run"

[Yagoda]

48 minutes ago, jerrymahoney said:

Get with the program. That was the plan all along. Karoline Leavitt said so.

 

But per NY Times:

 

White House officials repeatedly tried to suggest that today’s change in policy was a premeditated strategy designed to secure favorable deals.

 

But Trump himself acknowledged that his decision was made in response to the market turmoil, particularly in the bond market. “You have to be flexible,” the president said. “Over the last few days, it looked pretty glum.”

 

Give us the entire article from this Democratic propaganda outlet please. And how about a transcript of what he said, as opposed to second hand quotes.

[CallumWK]

UNstable genius running the US

[jerrymahoney]

17 minutes ago, Yagoda said:

Give us the entire article from this Democratic propaganda outlet please. And how about a transcript of what he said, as opposed to second hand quotes.

It's the same as on this left-wing propaganda machine:

 

https://abcnews.go.com/Politics/trump-explains-dramatic-reversal-tariffs-people-bit-afraid/story?id=120651386

[jerrymahoney]

39 minutes ago, bamnutsak said:

 

Shades of the Monty Python skit: "Spanish Inquisition".

 

 

I prefer this from Peter Sellers as "Chance the Gardener" in Being There:

 

 

		(a beat)
		Yes...of course.  Well, I assume,
		since the President quoted you, that
		you agree with his view of the
		economy.

				CHANCE (on TV)
		Which view?

	Applause and laughter from the TV audience.

 

 

 

 

 

 

 

 

[Marcous]

And there we have it, the great depression of the 21st century was avoided because people were getting 'yippy'

 

I thought insider trading was illegal. Oh, it's Trump, never mind then.

[JustinT]

How many deals did he negotiate before he panicked?

[bamnutsak]

2 minutes ago, JustinT said:

How many deals did he negotiate before he panicked?

 

None.

 

He got the yips.

 

He's a Panican.

[candide]

1 hour ago, bamnutsak said:

So the "Golden Age" of America is delayed by 90 days?

 

Millions of Americans will have to wait 90 days to report to the factories.

 

 

White House on Monday - "There will not be a pause".

 

White House on Wednesday - "There will be a pause."

 

 

It won't be easy! 

[impulse]

6 minutes ago, bamnutsak said:

 

None.

 

He got the yips.

 

He's a Panican.

 

The yips?  He just postponed.  Now he's bringing a sledgehammer to every negotiation.  They call that "strategic ambiguity".

 

[bamnutsak]

Just now, impulse said:

He just postponed

 

He caved. He folded. He blinked. He realized he was losing.

 

1 minute ago, impulse said:

Now he's bringing a sledgehammer to every negotiation

 

Yeah, sure. If that makes you feel better.

 

BTW, he wouldn't even know which end of the sledgehammer to pick up.

 

 

[Chomper Higgot]

‘The Art of Capitulation’.

 

 

[pomchop]

37 minutes ago, jerrymahoney said:

I prefer this from Peter Sellers as "Chance the Gardener" in Being There:

 

 

		(a beat)
		Yes...of course.  Well, I assume,
		since the President quoted you, that
		you agree with his view of the
		economy.

				CHANCE (on TV)
		Which view?

	Applause and laughter from the TV audience.

 

 

 

 

 

 

 

 

Reporter:     Mr. Trump it has been reported and verified that you have told thousands of lies as POTUS.  Can you tell us What is your favorite lie?

 

Mr. Trump:  I don't lie

 

Reporter:  Yes that is my favorite one also.

[JustinT]

11 minutes ago, impulse said:

He just postponed.  Now he's bringing a sledgehammer to every negotiation.  They call that "strategic ambiguity"

 

He panicked because the bond market was tanking.  No country will take him seriously now.  It's obvious the US could not tolerate those tariff rates long term.

[pomchop]

24 minutes ago, Marcous said:

And there we have it, the great depression of the 21st century was avoided because people were getting 'yippy'

 

I thought insider trading was illegal. Oh, it's Trump, never mind then.

How much money could you make if you had a tip that he would announce the "pause"  a day before?  Billions upon billions?  How much could  you make if he declares next week that a few countries who he met with did not sufficently lick his boots so tariffs are all back on?  Billions? 

 

Its very nice to be rich.  Hey maybe i will donate a few hundred million to my good buddy down in florida ..even play a round of golf and tell him how great he is... Tell  him: "Got any republicans senators or house who criticize you?  No problem I will donate a few hundred million to support someone to unseat them in an election. By the way do you have any new announcements coming soon? "

 

You scratch my back I scratch your back.  The skys the limit.

 

And are there any such thing as SEC investigators to look into insider trading ?  I suspect they have all been fired or told there will be no such investigations period.

[Chomper Higgot]

6 minutes ago, JustinT said:

 

He panicked because the bond market was tanking.  No country will take him seriously now.  It's obvious the US could not tolerate those tariff rates long term.

Well that and the fact that multiple online rightwing influencers that MAGA supporters flock to are broadcasting the *financial harm  Trump’s tariffs are causing.

 

 

Also 

Billionaires don’t like losing their Billions

 

https://www.theguardian.com/us-news/2025/apr/07/trump-tariffs-lawsuit

 

*Financial harm to themselves. The harm was always meant to be visited on other folk.

 

Not much talk of the price of eggs these days, let alone ‘making liberals cry’.

 

[Yagoda]

1 hour ago, impulse said:

 

The yips?  He just postponed.  Now he's bringing a sledgehammer to every negotiation.  They call that "strategic ambiguity".

 

Thank god for an island of sanity amid the crowd of screechers. This topic is descending into a crescendo of Trump hate madness, wow.

Remember though, they just shout what the media tells them to shout, scream what the influencers tell them to scream. You have to pity them.

 

BTW, any country cancel negotiations yet?