[New York Stock Market] 24-Year Rally on US Mutual Tariff Suspension... S&P Up 10%, Nasdaq Soars 12%

Trump Suspends Reciprocal Tariffs for 90 Days by Country
China Tariff Raised to 125% and Takes Immediate Effect
Trade War Fears Ease as Tariff Focus Narrows to China
S&P Sees Biggest Rally in 17 Years, Nasdaq in 24 Years
Tech Stocks Soar... Tesla Up 23%, Nvidia Up 19%

The three major indices of the U.S. New York stock market surged on the 9th (local time) following President Donald Trump's sudden decision to suspend reciprocal tariffs. The S&P 500 index soared over 9%, and the Nasdaq index jumped more than 12%, marking the largest rally in five years.

Reuters Yonhap News

On that day in the New York stock market, the blue-chip-focused Dow Jones Industrial Average (Dow) closed at 40,608.45, up 2,962.86 points (7.87%) from the previous trading day. This was the largest increase in about five years since May 2020. The large-cap-focused S&P 500 index rose 474.13 points (9.52%) to 5,456.9, and the tech-heavy Nasdaq index surged 1,857.06 points (12.16%) to close at 17,124.97. The daily gains of the S&P 500 and Nasdaq indices reached their highest levels in 17 and 24 years, respectively, since 2008 and 2001.

President Trump's sudden tariff suspension was the catalyst for the stock market surge. He announced that reciprocal tariffs on China would be raised to 125%, while reciprocal tariffs on other countries would be suspended for 90 days. This came about 13 hours after the full implementation of reciprocal tariffs just after midnight that day.

Previously, the U.S. imposed reciprocal tariffs of '10% + α' on all trading partners worldwide. The basic 10% tariff was first implemented on the 5th, and from just after midnight on the 9th, additional punitive tariffs ('+ α') were applied considering country-specific trade barriers. However, President Trump decided to suspend the '+ α' tariffs, excluding the basic 10% tariff, for three months for countries other than China, less than a day after the full implementation of reciprocal tariffs.

This move eased concerns about a Trump-led global trade war, triggering a buying frenzy.

Adam Crisafulli, founder of Vital Knowledge, analyzed, "Considering how suppressed stock prices and investor sentiment were, the 90-day tariff suspension is triggering a sharp rebound," adding, "By delaying the tariff implementation, market obstacles can be clearly removed." However, he cautioned, "The tariffs will not disappear," noting, "The reciprocal tariff rate on China is in the triple digits, and no one knows what will happen after the 90-day suspension ends."

U.S. Treasury yields are on the rise. The 10-year U.S. Treasury yield, a global bond yield benchmark, rose 8 basis points (1bp = 0.01 percentage points) from the previous trading day to 4.34%, while the 2-year Treasury yield, sensitive to monetary policy, increased 13 basis points to 3.87%. It is speculated that China, which holds a large amount of U.S. Treasuries, has started selling U.S. Treasuries in response to President Trump's tariff assault.

By individual stocks, U.S. electric vehicle maker Tesla soared 22.69%. Nvidia jumped 18.72%, and Apple surged 15.33%. U.S. automakers General Motors (GM) and Ford rose 7.67% and 9.32%, respectively.