Markets Surge After Tariff Suspension: US Gains 12%, Asian Markets Up 10%, Indian Markets Closed for Mahavir Jayanti
On April 9, the US stock markets closed with a sharp 12% gain, while Asian markets rallied by nearly 10%. Indian markets remained closed due to the Mahavir Jayanti holiday.
Reason Behind the Rally
The surge in global markets was driven by US President Donald Trump’s announcement to suspend reciprocal tariffs on all countries except China for 90 days. The decision aims to create space for new trade negotiations with various nations, easing global trade tensions temporarily.
Asian Market Performance:
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Nikkei (Japan): Jumped 2,660 points (+8.39%) to close at 34,370
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KOSPI (South Korea): Gained 110 points (+4.70%) to finish at 2,400
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TAIEX (Taiwan): Rose 620 points (+9.35%) to end at 19,020
US Market Highlights – April 9:
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Dow Jones Industrial Average: Soared 2,962 points (+7.87%) to 40,608 — its largest one-day gain since March 2020
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S&P 500: Gained 9.52% to close at 5,456.90 — the third-largest single-day gain in history
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NASDAQ Composite: Jumped 12.16% to 17,124 — its biggest one-day rise since January 2001
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Over 30 billion shares were traded, marking the most active day in Wall Street history
Top Gainers on the Dow Jones:
| Company | Price | Change ($) | Change (%) |
|---|---|---|---|
| Nvidia | $114.36 | +18.33 | +19.09% |
| Intel | $21.47 | +3.32 | +18.29% |
| Dow Inc. | $29.84 | +4.12 | +16.00% |
| Boeing | $160.82 | +21.74 | +15.63% |
| Apple Inc. | $198.60 | +26.22 | +15.21% |
Market Turnaround After Recent Losses
Just a day earlier, on April 8, US markets had closed in the red for the fourth consecutive session:
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Dow Jones fell by 320 points (-0.84%) to 37,645
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S&P 500 lost 79.48 points (-1.57%) to end at 4,982
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NASDAQ declined 335 points (-2.15%) to close at 15,268
Over the past four trading sessions, the Dow had lost more than 11%, but this sharp rebound helped recover most of those losses.
S&P 500’s Biggest Single-Day Gains (Historical):
| Date | Gain (%) |
|---|---|
| October 13, 2008 | 11.58% |
| October 28, 2008 | 10.79% |
| April 9, 2025 | 9.52% |
| March 24, 2020 | 9.38% |
| March 13, 2020 | 9.29% |
| October 21, 1987 | 9.10% |
| May 17, 1948 | 7.93% |
Tariff War: The Background
On April 3, President Trump had announced reciprocal tariffs on several countries:
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India: 26%, China: 34%, EU: 20%, South Korea: 25%, Japan: 24%, Vietnam: 46%, Taiwan: 32%
China responded by announcing 34% retaliatory tariffs, later increasing to 84%. On April 9, Trump raised tariffs on China to 125%, but suspended tariffs on other countries for 90 days.
According to Trump, the suspension allows time for new trade discussions and signals that the era of exploiting the US economy is over.
Indian Markets (April 8):
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Sensex closed 380 points lower at 73,847
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Nifty dropped 137 points to 22,399
Key sector losses:
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Nifty PSU Bank: -2.52%
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Nifty IT: -2.19%
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Nifty Pharma: -1.97%
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Nifty Realty: -1.90%
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Nifty Metal: -1.48%
