What fueled this aggressive rally?
Before the tariff pause was revealed, markets were already recovering from early-session volatility. Stocks moved higher after Treasury Secretary Scott Bessent announced he would lead the next phase of tariff negotiations. Traders also took note of Trump’s early morning remarks calling it “a great time to buy,” helping shift sentiment.
The announcement marked a sharp turn in tone following escalating tensions between the U.S., China, and the European Union. The EU had approved retaliatory tariffs set to begin April 15, contributing to a sharp drawdown earlier this week. Over the prior four sessions, the Dow dropped more than 4,500 points, the S&P 500 slid 12%, and the Nasdaq Composite lost over 13%.
Which stocks led the recovery?
Tech and consumer giants, some of the hardest hit during the tariff turmoil, led the rebound. Apple rose 7%, while Nvidia jumped 10%. Walmart, often viewed as a barometer of tariff impact due to its global supply chain, climbed 9%. Broad market participation was strong, with nearly all S&P 500 sectors closing in positive territory.
What should traders watch next?
While the tariff pause offers temporary relief, uncertainty around trade policy remains elevated. The exclusion criteria for the 90-day suspension are still unclear, and the 125% tariff on China could reignite tensions. Traders should monitor updates from the Commerce and Treasury Departments, as well as reactions from China and the EU in the coming sessions.
Treasury yields moved higher on the risk-on tone, and further guidance from the Fed could influence short-term equity direction. With volatility still elevated, positioning around trade-sensitive sectors remains crucial.
More Information in our Economic Calendar.
