90 days of relief in tariffs with tremendous boom in the US stock market! Investors get big relief – America Wall Street SURGES as Us President Trump Hits Pause on Tarifs NTC
Taking a major decision on the global trade front on 9 April Wednesday, US President Donald Trump postponed the tariffs imposed on most countries for 90 days. Soon after this decision, the major indexes of Wall Street gained strongly and the investors got great relief. However, Trump further increased the tariffs on China, due to which the possibility of trade war between the two countries has started deepening again.
After Trump’s announcement, S&P 500 recorded a gain of 474.13 points (9.52%) and closed at 5,456.90. The Nasdaq Composite gained 1,857.06 points (12.16%) and closed at 17,124.97 and Dow Jones Industrial Average jumped 2,962.86 points (7.87%) and it closed at 40,608.45. During this time Walmart’s shares increased by 8%.
Bond market fluctuations
Although the stock markets were bright, the instability in the bond market was seen. The auction of the US 10-year-old Treasury Note was $ 39 billion, with the interest rate of 4.435%-it was slightly lower than expectations, indicating strong investment demand. Despite this, the 10-year-old bond yield was eventually 4.370%. Traders gave priority to go into cash by selling US Treasury, which is considered to be ‘safe haven’, which led to an edge in the yield.
Bond -like real estate (.SPLRCR) and utility (.SPLRCU) sectors also compensated for losses and both closed at 5% and 3.2% respectively.
America’s big step against China
This is considered to be Trump’s most aggressive step ever amidst the US-China trade tension. He wrote in its post, “In response to the disrespect of the world markets, the US will now charge a fee of 125%. China will have to understand that the exploitation of America and other countries will no longer be tolerated.”
Earlier, China also retaliated on Wednesday and increased tax on the products imported from the US to 84 percent, which was earlier 34 percent. China’s Foreign Ministry criticized the move and said that it would take concrete and strong steps to protect its valid rights and interests.
In this tariff campaign of America, 75 countries including India are currently relieved. These countries will not apply new tariff rates and they have been given a discount of 90 days. During this period, only 10% fee will be charged on them. American Treasury Secretary Besant said that the countries who have survived retaliation against America will get its reward. He said that Mexico and Canada have been included in 10% tariff slab, which will give them relief.
