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Takeaways from the Key Takeaways
- Asian and European stock indexes are rallying after President Donald Trump said he would pause "reciprocal" tariffs for 90 days for all trading partners except China.
- U.S. stock futures are pulling back after soaring yesterday on the news.
- The 10-year Treasury yield, which affects borrowing costs on all sorts of loans, is falling after spiking Wednesday.
Asian and European stock markets are rising after President Donald Trump announced he would suspend “reciprocal tariffs” for 90 days, except for China.
U.S. stock-futures are pointing downwards after major indexes rocketed higher on Wednesday. Goods entering the U.S. from China now face a 125% duty, while Beijing has imposed a levy of 84% on U.S. imported goods. Imports from other markets to the U.S. still face a duty of 10%, and economists say the tariffs can still cause economic damage.
Dow Jones Industrial Average Futures are down about 1.7% after the blue-chip closed yesterday almost 8% higher, a gain that was nearly 3,000 points. S&P 500 futures are falling 2.1% after the index jumped 9.5% for its biggest gain since 2008. Nasdaq’s futures are down by 2.4% after the tech index jumped more than 12% to its largest gain since 2001.
Japan's Nikkei and Hong Kong's Hang Seng, which had ended trading yesterday before Trump's pause announcement, closed 9% and 2% higher Thursday, while the Stoxx Europe 600 index is up 5%.
The 10-year Treasury yield has dropped to 4.29%, after reaching a high of 4.52% on Wednesday morning. This is its lowest level since mid-February.
“The market discipline that made Trump blink was not just a bear market for stocks, but also the spikes in bond yields, credit spreads (especially HY), as well as the risk of a disorderly dollar collapse,” wrote Nouriel Roubini in a blog post on X. “Trump blinked, and decided to pause tariffs for 90 days.”
