Stock Market Rebounds with Largest Single-Day Gains in Years After Trump's Tariff Announcement

On April 9, 2025, the US stock market experienced a significant rebound following a series of volatile days. The Dow Jones Industrial Average surged by 2,370 points, or 6.3 percent, while the S&P 500 soared by 7.4 percent. The tech-heavy Nasdaq jumped by 9.6 percent, marking one of the largest single-day gains in recent history.The key factor driving today's market direction was President Donald Trump's announcement of a 90-day pause on some of the higher tariffs he had announced last week, although he maintained a 10 percent baseline tariff across the board. Additionally, Trump introduced new tariffs on China, increasing the cumulative tariffs on Chinese goods from 104 percent to 125 percent, in response to China's fresh round of tariffs that raised levies on US goods to 84 percent.In terms of sector performance, technology stocks were among the top gainers, with companies like Tesla and Nvidia leading the rally. Health insurance stocks also performed well, with Humana surging 10.7 percent after the Centers for Medicare & Medicaid Services announced increased government payments to Medicare insurers. Defense contractors such as Lockheed Martin, General Dynamics, and RTX also saw gains following the White House's pledge to spend approximately one trillion dollars on defense in fiscal 2026.On the other hand, decliners included stocks in the renewable energy sector, such as Enphase Energy, which fell 11.2 percent, and On Semiconductor, which dropped 8.9 percent due to softness in automotive end markets.The most actively traded stocks included those in the technology and defense sectors, as well as health insurance companies. The significant market-moving news event was Trump's tariff announcement, which had a profound impact on market sentiment.Looking forward, pre-market futures had initially indicated a lower open due to ongoing tariff tensions, but the actual trading day saw a strong rebound. Key events to watch for tomorrow include the continued impact of the tariff changes and any potential responses from trading partners. Important upcoming earnings releases will also be closely monitored, particularly in the banking sector as earnings reporting season kicks off on Friday.Potential market catalysts include further developments in the trade war between the US and China, as well as any changes in economic data releases that could influence market direction. Long-term Treasury yields, which soared after a lackluster US sale of notes, will also be watched closely for signs of market stability or instability.This content was created in partnership and with the help of Artificial Intelligence AI