President Trump has announced a 90-day pause on most new reciprocal tariffs, keeping a 10% base rate for nations that haven’t retaliated. But China wasn’t spared — tariffs on Chinese goods were cranked up to a whopping 125% in response to their trade moves.
Wall Street’s Reaction? A Full-On Party: S&P 500 soared +9.5% — its best day since 2008! Nasdaq exploded +12.2% — biggest jump since 2001! Dow Jones rocketed +2,963 points (+7.9%) — the largest point gain in history!
Global Vibes: Nikkei 225 surged over +8% in Tokyo ASX 200 popped +4.7%, adding $121B in value — although gains cooled later in the session
Meanwhile, in Bonds: The U.S. Treasury market saw wild swings. A major $39B auction of 10-year notes drew strong interest, calming nerves after a shaky short-term auction.
Capitol Hill Drama: Trump’s surprise announcement during a Congressional hearing left even his own team scrambling — including Trade Rep. Jamieson Greer. GOP lawmakers called it a “savvy reset,” while Dems slammed it as “chaotic and calculated.”
The Bigger Picture: While markets popped, economists are cautious. The effective U.S. tariff rate is now 20%, up from just 2.4% in 2024. Translation? Uncertainty may still weigh on hiring, investment, and overall economic momentum.
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