S&P 500 Jumps 9% After Trump Pauses Tariffs, Capping a 16-Day Rebound
Updated
Updated · CNBC · May 16
S&P 500 Jumps 9% After Trump Pauses Tariffs, Capping a 16-Day Rebound
2 articles · Updated · CNBC · May 16
April 9 delivered the S&P 500’s best day of Trump’s second term, with the index surging more than 9% after he paused widespread tariffs.
That rally helped complete a rebound from a 9.1% pullback in just 16 calendar days—tied for the ninth-fastest recovery from that size decline since World War II, CFRA said.
More than 20% first-quarter earnings growth and AI-driven optimism also underpinned the recovery, while last month’s U.S.-Iran ceasefire eased fears of persistently high oil prices.
Fundstrat said Trump has driven both the market’s best and worst five trading days since returning to office; without the five best days, the S&P 500 would be up about 1% instead of 23.5%.
Strategists said that headline-driven trading and Trump’s rapid social-media messaging have reshaped Wall Street’s playbook, reinforcing buy-the-dip behavior but also entrenching volatility.
With markets driven by headlines, how can investors separate political noise from true economic signals?
As geopolitical and domestic economic pressures mount, which is the greater long-term risk to market stability?
AI is fueling market growth and massive cyber fraud. When will the financial risks eclipse the gains?
The April 2025 Tariff Crisis: Market Swings, Global Fallout, and Lessons for Investors
Overview
After President Trump announced broad tariffs, financial markets entered a period of volatility. On April 9, 2025, Wall Street saw a notable rebound as investors reacted to ongoing policy discussions and sought stability amid trade uncertainty. However, this surge only partially reversed earlier losses, with major averages still below their pre-tariff levels. The market’s immediate response reflected a desire for clarity, but the recovery remained incomplete, highlighting how sensitive markets were to shifting trade policies and the complex interplay between policy changes and investor sentiment during this turbulent period.