Donald Trump amazed global investors on Wednesday when announcing a 90-day pause in additional fees for countries that were ready to negotiate with the US, sending actions that were growing as the president withdrew from a full trade war.
Wall Street chapters increased shortly after Trump’s announcement, with the Chip Blue-Chip S&P 500, closing 9.5 percent and nasdaq composition, increasing more than 12 percent. It was the best day for S&P 500 since 2008 and the strongest for Nasdaq since 2001.
The massive rally in the stock added about $ 4.3TN to the S&P 500 market value, according to the Financial Times calculations based on Factset data. Profits have changed some of the heavy losses for US actions since Trump announced his broad tariffs a week ago.
However, the president also singled out China for further tariffs, raising his additional taxes in the world’s second largest economy to 125 percent, deepening his trade attitude with the Asian nation.
Trump said in a social post of truth: “Based on the fact that more than 75 countries have called … to negotiate a solution … and that these countries do not have, with my strong suggestion, in any way, form, or form against the United States, I have authorized a 90 -day pause, and a lowly lowered fee during this period, also 10%.”
But China had shown a “lack of respect” by retaliation against US tariffs, Trump added. “I am raising the charged tariff in China from the United States of America to 125%, effective immediately.”
The stunning climb by the US leader came after a week of turmoil in global markets, with trillions of dollars poured into capital prices worldwide, a sharp sale in US bonds and a diving at the first level oil prices during the Coronavirus Pandemia.
“This is Trump’s capitulation for markets,” Andy Brenner said in Natalliance Securities. “He has saved his face holding fees in China.”
A heavy sale in US government debt, a bed of the global financial system, was facilitated after Trump’s turn and a treasury auction that signaled a strong international demand. The 10-year yield, which had grown up to 0.24 percentage points on Wednesday, ended New York day with 0.08 percentage points to 4.35 percent.
Companies that had been beaten in recent days also posted large profits on Wednesday. Apple, Nvidia, Microsoft, Amazon, Meta and Tesla all dropped at least 10 percent after Trump’s announcement.
Trade Secretary Howard Lutnick said “the world is ready” to work with Trump to “fix global trade”, but rejected China as “chosen the opposite direction”.
Lutnick added to X that he and the Treasury Secretary Scott Bessent sat with the president as he wrote one of the most extraordinary posts of the truth of his presidency. “
Later on Wednesday, Trump seemed to accept some of fear in the markets caused by his trade war.
“Well, I thought people were jumping a little away.
Wednesday’s market rally after Trump withdrew from many of his tariffs “made it” the biggest day in financial history, “he said.
Wall Street banks had warned that taxes would send the US economy to the recession as they increased inflation and unemployment.
Shortly before the Trump’s shock announcement on Wednesday, Goldman Sachs envisioned a recession in the US economy caused by the president’s trade war. Just over two hours later the bank gave up its forecast.
However, investors and economists announced the remaining tariffs, including a 10 percent tax on most imports from around the world, would weigh growth and postpone prices.
“Banking mutual tariffs by excluding China does not mean that the US economy has avoided a slowdown in growing and increasing inflation,” Citigroup said. “The uncertainty on trade will continue and non-KINI imports can now grow, extinguishing growth in the second trimester.”
Trump’s climb is used in a phase of what is expected to be numerous, parallel trade negotiations between the US and its senior trading partners in the coming weeks to try to solve trade tensions.
Bessent on Tuesday announced that he will lead talks with Japan, along with Trump’s highest trade negotiator Jamieson Greer, in an effort to reach an agreement that could lead to lower tariffs.
The measure came after days of mixed messages from Trump administration officials how stable the tariffs would be and if the US was open to talks with its trading partners in order to reduce them.
Greer was providing evidence to the Committee of the House of Representatives and the Committee when Trump announced his pause.
“WTF, who is responsible?” Steven Horsford, a Democratic lawmaker from Nevada, cried in Greer moments after Trump announced the break.
Horsford asked Greer if he was aware that the president had just stopped his tariffs. Greer replied that he was aware that the proposal had been “in discussion”.
Additional reporting by Steff Chávez to Washington
