Stock Market Today: Stocks surge as Trump retreats on tariffs with 90-day pause
The S&P 500 has fallen more than 12.1% since President Trump's tariff announcement last week.
U.S. stocks moved higher in early Wednesday trading, paired with a spike in Treasury bond yields, as investors braced for the global market impact of President Donald Trump's sweeping tariffs and the rising odds of a domestic recession.
Updated at 1:25 PM EDT
Trump pause
President Trump has issues a 90-day paused on the tariffs he put in place just two days ago, sparking a massive rally on Wall Street that was helped by a stronger-than-expected auction of $39 billion in 10-year notes.
Trump said the pause is effective immediately, but added that he would increase levies on China-made goods to 125%.
"At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable," the President said. "Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade ..."
The S&P 500 was last marked 320 points, or 6.6% higher following the President's remarks, with the Dow gaining 2,1050points and the Nasdaq up 1,169 points, or 7.66%.
10% - 90d pause https://t.co/8X1jGfWdz6— The Long View (@HayekAndKeynes) April 9, 2025
Updated at 11:57 AM EDT
Recession risks
The latest update to the Atlanta Fed's GDPNow tracker shows the U.S. economy contracted by 2.4% over the first quarter, a massive swing from the 2.4% growth rate recorded over the final three months of last year.
Even when adjusted for the huge increase in gold imports, which distort its overall calculations, the gauge indicates a first quarter contraction of 0.3%.
US Atlanta Fed GDPNow Q1: -2.4% (prev -2.8%)https://t.co/GIJHH2ZMsR pic.twitter.com/QZy5df4MwT— LiveSquawk (@LiveSquawk) April 9, 2025
Updated at 10:46 AM EDT
Bottom fishing
Stocks are building gains in the opening hour, but elevated levels of volatility, in both the bond and equity markets, has investors on edge amid the escalating global trade war triggered by President Donald Trump.
The S&P 500 was last marked 24 points, or 0.48% higher on the session, with the Nasdaq rising 187 points, or 1.22%. The Dow was last seen 8 points higher.
"Markets are telling us there are buyers waiting in the wings for the faintest whiff of constructive news on tariffs, as we have seen in this week's intraday movements," said Carol Schleif, chief market strategist at BMO Private Wealth in Minneapolis.
"It may be a little too soon to bottom fish broadly, but for those with a very long term view and strong stomachs, putting a shopping list together is a viable consideration," she added.
Volatility breeds uncertainty, and uncertainty gives birth to pessimism.
Dumb Money Confidence has plunged, while Smart Money Confidence has jumped.
The spread between them is now 2nd only to the re-opening after the 9/11 attack. pic.twitter.com/K84bbMOABP— Jason Goepfert (@jasongoepfert) April 9, 2025
Updated at 9:38 AM EDT
Mixed open
The S&P 500 was marked 19 points lower, or 0.41%, while the Nasdaq gained 45 points, or 0.28%.
The Dow, meanwhile, fell 252 points with the Russell 2000 down 13 points, or 0.75%.
The VIX index surged past $54 in early trading, but was last marked at $52.01, suggesting daily swings of around 3.25%, or 160 points, for the S&P 500.
"While most hard data, including last week’s jobs report, suggests the US economy is still on relatively solid ground, financial markets remain volatile, reflecting potential tremors beneath the surface," said Daniel Skelly, head of Morgan Stanley's Wealth Management Market Research & Strategy Team.
"Tariffs remain top of mind, and we don’t have much more clarity about them than we did before last week’s announcement," he added. "Until we get it, stocks may have difficulty gaining traction. But this isn’t a time for investors to abandon a long-term outlook. We’re in one of those challenging, but inevitable, periods of volatility that investors have to navigate to reach their goals."
S&P 500 Opening Bell Heatmap (Apr. 09, 2025)$SPY -0.37%
