Dow surges 2,800 points for biggest gain in 5 years, Nasdaq jumps 11% after Trump tariff reversal


In a historic market turnaround, U.S. stocks soared on April 9, 2025, following President Donald Trump's unexpected announcement of a 90-day pause on most newly introduced tariffs. This policy shift, aimed at easing trade tensions, led to the Dow Jones Industrial Average surging over 2,600 points, marking its most significant single-day gain in five years. The Nasdaq Composite Index also experienced a remarkable rally, jumping 10.3%, as investors responded positively to the news. ​

Initially, the Trump administration's introduction of steep tariffs, including a broad rise in U.S. tariff rates and a 125% tariff on Chinese imports, had raised concerns about a potential global recession. Goldman Sachs, for instance, increased its 12-month recession probability to 65% following the announcement. However, the abrupt reversal, with a 90-day pause on most tariffs excluding China, led Goldman Sachs to revise its forecast, reducing the recession probability to 45% and maintaining a baseline GDP growth estimate of 0.5%. ​

The market's reaction was swift and substantial. The Dow's 2,640-point surge represents a 7% increase, propelling the index away from bear market territory. The S&P 500 rose 8.3%, and the Nasdaq's 10.3% gain was its largest since 2008. This rally was fueled by investor relief over the tariff pause, with significant gains observed in sectors sensitive to trade policies, such as airlines and travel-related stocks. Delta Air Lines, for example, saw its stock price soar by 20.2%.​

Treasury Secretary Scott Bessent confirmed that the tariff pause applies to the U.S.'s largest trading partners, excluding China. While the immediate market response was overwhelmingly positive, experts caution that uncertainties remain beyond the 90-day period. The trade conflict with China persists, with China vowing retaliatory measures, and the long-term implications of the tariff policy reversal are yet to be fully understood. ​

In summary, President Trump's sudden decision to pause most new tariffs has led to a historic surge in U.S. stock markets, with the Dow and Nasdaq experiencing their most significant gains in years. While this development offers temporary relief and boosts investor sentiment, the evolving nature of trade policies suggests that markets will continue to navigate a complex and dynamic economic landscape in the coming months.​

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