Wall Street Breakfast

Stocks to the moon as Trump backs off trade war (except for China)

Apr 9, 2025
Trump's unexpected turnaround on tariffs sends shockwaves through the market, with stocks skyrocketing as the Dow gains nearly 3,000 points. The influence of rising bond yields appears to have played a critical role in this shift. China retaliates with its own tariff increases on U.S. goods. Experts analyze how these trade policy changes affect different sectors, emphasizing the ongoing volatility in the financial landscape.
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INSIGHT

Bond Market Influence

  • President Trump reversed tariffs on most countries except China after market pressure.
  • The bond market, particularly rising treasury yields, influenced this decision.
INSIGHT

Trade War Focus

  • Trump's trade war was primarily focused on China, but he initially targeted many countries.
  • This broad approach was a strategic error, now corrected by focusing solely on China.
ANECDOTE

Market Reactions

  • Stock markets reacted positively to the tariff reversal, with airlines and chip stocks soaring.
  • Companies like Broadcom and NVIDIA recovered post-tariff losses, while other sectors struggled.
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