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Takeaways
- The S&P 500 surged 9.5% on Wednesday, April 9, roaring back in an afternoon rally after President Donald Trump temporarily suspended widespread tariffs.
- AMD and other semiconductor companies' shares tore higher, recovering from recent losses driven by tariff concerns.
- Delta Air Lines shares soared after the carrier exceeded quarterly earnings expectations. Shares of United Airlines, a rival airline, also rose.
Major U.S. stock indexes surged following President Donald Trump’s announcement of a 90 day pause on “reciprocal tariffs” on imports from U.S. Trading Partners around the World, less than a week after the levies were implemented.
After fluctuating in early trading, the S&P 500 screamed higher following the latest shift in trade policy, ending with a daily gain of 9.5%. The Dow advanced 7.9% and the Nasdaq rocketed higher by 12.2%.
The technology sector performed well as stocks that were hammered by fears about the impact of tariffs clawed some of their recent losses back. Shares of microcontroller and analog chipmaker Microchip Technology (MCHP) jumped 27.1%, notching the best daily performance of any S&P 500 stock, while shares of power management semiconductor provider Monolithic Power Systems (MPWR) popped 23.4% higher.
Shares of Advanced Micro Devices, which are known for their artificial intelligence (AI), soared by 23.8%. The stock’s surge came despite a downgrade from “overweight” to “sector” by KeyBanc Capital Markets analysts, who cited increased price competition with Intel.
Delta Air Lines (DAL), a major airline, has boosted the industry with its better-than-expected results in sales and profits for its first fiscal quarter. Delta announced it would cut back on capacity expansion in the second half as it navigates an uncertain economic environment. However, its shares rose 23.4% following the earnings report. United Airlines shares (UAL) rose 26.1%.
Telsa shares (TSLA) gained 22.7% following the tariff reprieve. Benchmark, a research firm, also included the electric car maker’s stock as one of its best investment ideas. It noted a more appealing valuation following recent price drops, the potential for sales to recover driven by a launch of a new model, and potential catalysts such as Tesla’s self-driving and robotaxi initiatives.
The heaviest loss among S&P 500 constituents was on Dollar General (DG) shares, which slipped 1.9%. The stock managed to buck the downtrend in the broader markets this week as concerns about deteriorating macroeconomic conditions boosted the outlook for cost-conscious consumers seeking bargains at the discount retailer’s stores. Dollar General shares received an upgrade from Melius Research analysts earlier this week. They highlighted the company’s relative insufficiency to tariffs.
MarketAxess Holdings, which operates an electronic platform for fixed income securities, saw its shares fall 1.5% after UBS reduced its price target. Analysts raised their first-quarter estimates for earnings to reflect increased credit volumes, but they expect lower pricing to restrain revenue growth.
