US: Stock market booms over Trump announcement; record rise in S&P 500, but threat of trade war remains

New Delhi| The US stock market rose on Wednesday when President Donald Trump said that he will temporarily withdraw the tariffs imposed on most countries. Investors were also expecting the same from Trump. After this there was a tremendous surge in the stock market. The S&P500, the U.S. stock market’s leading index, rose 9.5 percent on Wednesday, equating to a good year. This surge came at a time when investors earlier feared that Trump’s tariff war could push the entire world economy into recession.

“I have ordered a tariff freeze for 90 days”, Trump said He also pointed out that more than 75 countries had negotiated trade and had not retaliated on their tariffs. At the same time, Treasury Secretary Scott Besant said in a conversation with journalists that Trump has stopped the tariffs imposed on most countries for 90 days. But they have maintained ten percent tariff on goods coming from all over the world.

However, Trump is an exception in this matter. Trump said he would increase tariffs on Chinese products by 125 percent. This has increased the possibility of future fluctuations in the financial markets. The trade war is not over. The fight between the world’s two largest economies could harm the world. US stocks are also still below the level they were at a week ago when Trump announced the so-called ‘Liberation Day’.

But the situation on Wall Street was good on Wednesday. The Dow Jones Industrial Average recorded a gain of 2,962 points (7.9%). The Nasdaq Composite gained 12.2%. The S&P 500 performed its third best since 1940.

This relief came at a time when questions were being raised whether Trump was worried that the financial loss to the US stock market due to his tariffs affected him. The S&P 500 Index is part of many retirees’ accounts. The S&P 500 was nearly 19% below its previous high, and that high was just two months ago.