Global markets surge as Trump postpones tariff on all countries except China

• Japan’s Nikkei index rose 2,660 points or 8.39% to 34,370.
• Korea’s Kospi index rose 110 points or 4.70% to 2400.
• Taiwan’s TAIEX index rose 620 points, or 9.35%, to 19,020.
• The Nifty, which is traded on the NSE international exchange, is up by about 800 points.

• The Dow Jones rose 2,962 points or 7.87% to close at 40,608, its biggest single-day gain since March 2020.
• The S&P 500 index rose 9.52% to 5,456.90, its biggest single-session rise since 2008.
• The Nasdaq Composite, an index of tech stocks, rose 12.16% to 17,124, its biggest gain since January 2001.
• Nearly 30 billion shares were traded, making it the most-traded day in Wall Street history.

US market rises after 4 consecutive days of decline

On April 8, the US stock market closed in decline for the fourth consecutive trading day. The Dow Jones index fell by 320 points or 0.84% ​​to 37,645. It had gained about 4% in early trade. That is, it closed about 5% below the upper level.

At the same time, the S&P 500 index of the US market closed at 4,982 with a fall of 79.48 points or 1.57%. The Nasdaq Composite index of technology shares fell by 335 points or 2.15%. It closed at 15,268.

Dow Jones fell by 10% in three consecutive trading days. After Tuesday’s fall, the total fall of Dow Jones in four trading days was more than 11%. However, the rise in a single day has almost covered this fall of the market.

Reasons for market volatility

On April 3, US President Trump imposed tit for tat tariffs across the world. He has announced a 26% tariff on India. 34% tariff will be imposed on China, 20% on European Union, 25% on South Korea, 24% on Japan, 46% on Vietnam and 32% on Taiwan.

This move has started a tariff war. In response to America’s tariff, China announced a 34% retaliatory tariff on America. After China’s tariff, America announced an additional 50% tariff. This made the total tariff 104%.

In response to Trump’s action, China decided to impose a retaliatory tariff of 84%. On April 9, Trump once again increased the tariff on China to 125%, but postponed the tariffs on all other countries that were to be implemented from April 9 for 90 days.