The stock market experienced a rollercoaster ride this week, with a record surge followed by a sharp plunge on Thursday morning. President Trump’s announcement of a 90-day pause on nearly all import tariffs initially sent the Dow Jones Industrial Average soaring by 2,962.86 points on Wednesday, marking its largest one-day points gain in history. However, the optimism was short-lived as the Dow plummeted 836 points, or 2.1%, by 10 a.m. ET on Thursday.
The S&P 500 and the Nasdaq 100 also took a hit, falling by 2.7% and 3.3%, respectively, following the historic Wall Street rally. Despite the setback, major stock indexes had set multiple records the day before, with the S&P 500 making a remarkable comeback of over 9%, marking its third-largest single-day gain since World War II. The Nasdaq Composite also had a standout performance, recording its second-best day ever.
President Trump’s announcement of “reciprocal” tariffs during a press conference at the White House’s Rose Garden was initially well-received by the markets. However, the mood quickly shifted as investors reacted to the uncertainty surrounding trade policies and the potential impact on global markets. The market turnaround came after Trump unveiled a 90-day reprieve for most countries, reducing tariff rates to 10% during this period.
The fluctuating market trends highlight the impact of geopolitical events and policy decisions on investor sentiment and market volatility. As traders navigate through the uncertainties of trade negotiations and economic indicators, the stock market remains a dynamic and ever-changing landscape. Investors are advised to stay informed, diversify their portfolios, and exercise caution during periods of market turbulence.
