Market Update April 9, 2025… Stocks Surge!

It’s a bullish day for a Market Update. Today was the second biggest up day in the history of the Nasdaq stock index.

The Dow Jones Industrial Average catapulted more than 2,000 points higher late this morning after President Donald Trump announced a 90-day pause in reciprocal tariffs for some countries after China and the European Union retaliated over the duties. Trump also raised tariffs charged to China to 125% effective immediately. Today’s extreme bullish rally was most notable in the Nasdaq index. The Nasdaq climbed the second most in one day in history. See the table below. Notice how, as I have often noted, the stock market’s best days in history have occurred during bear markets.

It was a day of double and triple takes when looking at individual stock prices soar in enormous gains. Some up 20% to 25% and even more. Just in hours. It was natural to question my screens. The magnitude of today’s move was remarkable. On the news networks you may have heard, “Wow”, “Incredible”, “We had a great year’s worth of gains just today”, “Explosive rally!”. I heard those comments and more. My favorite was, “This is certainly one of the most extraordinary days in the market we can ever remember.”

The table below shows today’s market moves.

An investor paying close attention to the major market indices and individual equities over the last ten trading sessions may have a sense of sea sickness. Or a case of whiplash. Truly, the daily volatility has been extreme. Even 5 minute intervals show big swings. Today was no exception. With President Trump’s increased tariffs on China scheduled to go into effect at midnight last night, big market swings in the futures market and in today’s regular session were anticipated. As expected, the volatility index was soaring. The market open down. I was relieved to see the Nasdaq ‘only’ down 2%. Not long after, my indicators alerted me to internal market strength. Then came the Trump tweet on the tariff pause. The market simply did not stop rising until the closing bell was sounded.

Is the coast clear? Is the bottom of the bear behind us? I don’t think so. Yes, today was a massive move. However, there are still unknowns on the tariff front. How will China respond in the trade war between the two super powers? China retaliated to the 104% Trump tariff. How will they feel about 125%. Was today “just short covering?”. Again, a lot of unknowns. We know we are absolutely on a hyper-sensitive, news driven market; more now than usual. More headlines are likely to follow…

Extreme market reversals triggered by daily policy moves impacting markets are unprecedented. It is just imperative to have a rules based, prudent investment plan. I am honored to serve you as your investment advisor to help make sense of these unusual times. Protecting your principal and producing positive returns from a suitable investment portfolio and estate plan underscore my fiduciary role.

Hope this was helpful.

John