Trump Pauses Tariffs, S&P 500 Surges on Market Optimism – Coincu

U.S. President Donald Trump instituted a temporary suspension of increased tariffs on April 9, 2025, leading to a notable surge in U.S. financial markets, particularly the S&P 500, which rose by nearly 7%.

This adjustment signals a U.S. strategy shift, maintaining pressure on China while assuring other nations of stable tariffs. Global markets and investors recalibrated their expectations, betting on delayed rate cuts by the Federal Reserve.

Trump’s Tariff Pause Sparks 7% S&P 500 Rally

President Donald Trump’s announcement temporarily suspending tariff increases has shifted the U.S. trade focus toward China. Tariffs on imports from China have been raised to 125%, aiming at narrowing trade tensions to a strategic dispute with this significant trade partner. The suspension, affecting most other nations, effectively maintains tariffs at 10%, affecting more than 75 countries.

Market implications were immediate. The decision led to a significant relief among investors, reflected in a nearly 7% jump in the S&P 500 index. Interest rate futures traders, responding to this policy change, have adjusted their expectations, reducing anticipations for a Federal Reserve rate cut in May while increasing bets for June. The evolving trade dynamics have eased immediate market concerns, emphasizing alterations in investor sentiment.

“More than 75 countries reached out for trade talks and haven’t retaliated, so I’ve authorized a 90-day pause and substantially lowered reciprocal tariff rates” – Donald Trump, President of the United States (PBS News Hour).

Cryptocurrencies Surge Amid Eased Global Trade Tensions

Did you know? Historical instances of tariff de-escalation under Trump, mimicking actions from 2018-2019, have stabilized markets temporarily. Consequently, Bitcoin and other cryptocurrencies responded positively during similar periods of global trade tensions.

Bitcoin’s price fluctuated at $83,191.45, alongside a market cap of $1.65 trillion, according to CoinMarketCap data as of April 9, 2025. The cryptocurrency’s 24-hour trading volume rose by 70.60% to $82.68 billion, with an 8.60% price increase within the same period. Bitcoin’s market performance reflects its resilience in volatile economic environments.

Insights from the Coincu research team emphasize that trade policy adjustments are key factors influencing both traditional and cryptocurrency markets. The geopolitical landscape’s tension reduction often stabilizes macroeconomic indicators, directly affecting financial assets. Historically, regulatory and monetary trends indicate consistent market adaptations to trade developments, underpinning a robust market response to positive policy shifts.