Dow Jumps 1,300 As Some Relief Washes Through Financial Markets On Hopes For Tariff Negotiations
HuffPost
Some relief is flowing through financial markets worldwide as stocks bounce to recover a bit of their historic losses since Trump dramatically raised the stakes in his trade war last week.
NEW YORK (AP) — Some relief is flowing through financial markets worldwide Tuesday, and stocks are bouncing to recover a bit of their historic losses since President Donald Trump dramatically raised the stakes in his trade war last week.
The S&P 500 was up 3.7% in morning trading, though it still remains more than 14% below its record set in February. The Dow Jones Industrial Average was up 1,388 points, or 3.6%, as of 10:30 a.m. Eastern time, and the Nasdaq composite was 4.1% higher.
The bounce was global. Stock indexes rallied 6% in Tokyo, 3.5% in Paris and 1.6% in Shanghai. The price of crude oil also pulled higher after touching its lowest level since 2021 on Monday. Bitcoin steadied and was back above $79,000 after dropping toward $76,000 the prior day.
Even with Tuesday’s big jump, which could be the best for the S&P 500 since late 2022, analysts say more swings up and down are likely for markets not only in the days ahead but also perhaps the hours.
The big question remains centered on how long Trump will keep his stiff tariffs on other countries, which would raise prices for U.S. shoppers and slow the economy. If they last a long time, economists and investors expect it to cause a recession. But if Trump lowers them through negotiations relatively quickly, the worst-case scenario can be avoided.
