In a major intraday turnaround, the Nasdaq Composite Index soared over 1,236 points or 8.10%, hitting 16,504.13 as of 1:41 PM GMT-4 on April 9, with gains accelerating after former U.S. President Donald Trump announced a 90-day tariff pause for countries that have not retaliated against the U.S.
The index opened at 15,295.44 and surged to an intraday high of 16,752.02, marking one of the sharpest single-day spikes in recent months. The gains were led by large-cap tech stocks, as investors cheered the temporary trade relief and viewed it as a signal of possible future negotiations.
Trump hikes China tariffs to 125%, announces 90-day pause for others
The market rally followed Trump’s late-night post on Truth Social, where he declared an immediate increase in tariffs on Chinese goods from 104% to 125%.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump wrote.
He further stated that more than 75 countries had reached out to U.S. departments such as Commerce, Treasury, and the USTR to negotiate solutions regarding trade barriers and tariffs. In response, he authorized a 90-day pause on reciprocal tariffs for these nations, with a reduced 10% rate to be applied during this window.
Background: China’s retaliation and the global response
Earlier this week, Trump imposed a 104% tariff on Chinese imports, which was met with China retaliating by raising its own tariffs to 84%. The Chinese Ministry of Finance said the move was to counter Washington’s “unilateralism and protectionism.”
On the same day, China released a white paper titled “China’s Position on Some Issues Concerning China-U.S. Economic and Trade Relations.” The document defended China’s trade practices, emphasized its WTO commitments, and condemned U.S. overuse of national security exceptions in trade matters.
Market Reactions
Despite the aggressive tone on tariffs, global markets responded positively, especially after the announcement of the temporary pause for non-retaliating countries. While China, Canada, and the EU are expected to be excluded due to their countermeasures, India is among the countries benefiting from the pause, boosting regional sentiment.
Elsewhere, Dow Jones surged over 2,200 points (5.86%), and Gift Nifty climbed 2.01% as optimism returned to equity markets. The rally signals that investors are betting on a near-term de-escalation for non-targeted economies and hope that future negotiations may soften Trump’s trade war tone.
