Donald Trump suddenly announced a break for his trade war yesterday. The S&P 500 and Nasdaq reacted with explosive climbs. Only in 2001 and 2008 did the S&P 500 and Nasdaq record a larger percentage increase on a daily basis.
What do these climbs say about the situation?
First of all, these enormous climbs show that it is a very serious situation. This tells us that the market was very concerned about the near future and even expected a deep bear market or a recession if Trump’s trade war lasted too long.
This also shows us that investors are ready to get ready as soon as the trade war moves into the background.
However, it seems too early for this conclusion, because with this 90-day break the trade war is of course not yet completely over. A lot more is necessary for this, so we should probably prepare for a period of increased volatility.
The market also seems to be recognized. It was striking that gold did not initially participate in the climbs. Apparently the gold market is currently considered a asset that cuts off well as long as uncertainty continues.
In the meantime, however, a few hours have passed and the gold course is significantly up, which means that the market recognizes that the end of the trade war is not yet in sight.
Commercial war always revolved around China and America
It is now clear that the trade war for Donald Trump is mainly about China. While most countries now get some breathing space, the import tariffs towards China remain in force.
According to Robin Brooks, Trump made a mistake by not concentrating only in China from the start. Now he argued with the whole world, and that has not helped his reputation and that of the United States.
This trade was what real always about the us vs china. The Us Made A Strategic Error by Picking Fights with Everyone, Instead of Just Focusing on China. The 90 day break fixes that and is thus very good. So gives xi an off-ramp if he reverses china’s retaliatory Taiffs … pic.twitter.com/8l4rq5eksi
– Robin Brooks (@Robin_j_Brooks) April 9, 2025
However, it is clear that Trump is also sensitive to the services of Bitcoin And the stock markets reacted, because on this side it was loudly demanded to end the trade war.
Although this is not yet over, Trump begins to uncover his cards, and there is slowly creating more clarity.
(Tagstotranslate) Donald Trump