Tech Stocks Soar as Trump Announces Tariff Pause

NEW YORK, April 10, 2025 — Technology stocks surged on Wednesday after President Donald Trump announced a 90-day pause on certain reciprocal tariffs that had recently imposed turmoil in the market. The S&P 500 rose 7.8% while the Dow Jones Industrial Average increased by 2,544 points, or 6.8%. The Nasdaq Composite jumped approximately 10%.

In a post on his Truth Social platform, Trump detailed plans for a temporary reduction of tariffs on non-retaliatory countries to a base rate of 10%. However, he also emphasized that tariffs on imports from China would rise to 125%. These moves came in response to a turbulent few days in the stock market, where major indexes suffered significant declines following the announcement of a wide-ranging tariff plan.

“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump wrote. This announcement prompted a rally among major tech companies. Shares of Apple soared 11%, while Nvidia and Amazon climbed 13% and 7.5%, respectively. Major stocks such as Alphabet and Microsoft also saw significant increases, with gains of 6.4% and 7.8%.

The surge in stock prices extended to the airline sector as well. Delta Air Lines, which recently reported better-than-expected first-quarter earnings, experienced a stock increase of over 22%. United Airlines also saw a notable rise of more than 19%, while Southwest Airlines gained 12%. Travel-related stocks such as Expedia saw similar gains, reflecting overall positive sentiment in the market.

The pause in tariffs comes at a time when investors were concerned about the effects of prolonged trade tensions on the U.S. economy. The market had previously reacted negatively to Trump’s tariff threats, which reportedly eroded billions of dollars in market value for major companies, including Apple.

Apple shares have fluctuated significantly in recent days, losing more than a fifth of their value before the recent gains, amid fears of the potential impacts from heightened tariffs. Despite the temporary reprieve, analysts caution that the fundamental challenges posed by the ongoing trade war with China remain.

“While the tariff pause is a welcome reprieve, the lingering uncertainties surrounding trade with China continue to loom large,” said Dan Ives, a tech analyst at Wedbush. “China remains the biggest wildcard for the tech sector, and this will require close monitoring in the coming months.”

In contrast to the bullish moves in technology and airline stocks, shares of several pharmaceutical companies fell following Trump’s remarks about impending tariffs on the industry. Companies like Pfizer and Johnson & Johnson saw declines as Trump suggested tariffs would be implemented to encourage domestic manufacturing.

With a 90-day period set to allow for negotiations with individual countries, analysts express cautious optimism about the market’s direction. “The next few months will be critical for assessing the long-term implications of these tariff decisions and their potential to sustain market recovery,” noted Scott Siefers, an analyst at Piper Sandler.