US President Donald Trump announced a 90-day pause on most new tariffs, sparking a surge in the Dow Jones, S&P 500, and Nasdaq. The market added over 2,900 points, or nearly 8%, with the S&P 500 soaring almost 9.5% and the Nasdaq rising over 12%. However, economists warn that this temporary reprieve may not be enough to undo the damage caused by Trump’s policies.
The pause was seen as a positive move by investors, but experts say it doesn’t address the underlying issues with trade tensions and tariffs. RSM chief economist Joe Brusuelas stated that the recession risk remains high, despite the pause, as businesses have already felt the supply shock and are raising prices in accordance with the White House’s promise.
The pause was a surprise move by Trump, who has been under pressure from investors and economists to ease tensions with China. However, many experts warn that this is just a temporary reprieve, and the economy is still likely to fall into recession.
Despite the market gains, the odds of a recession are still elevated at around 45%, according to Goldman Sachs economists. The bond market’s distress signal has also raised concerns about investors’ perception of the US government’s long-term stability.
Trump’s decision to pause tariffs was seen as a move to calm nerves and give corporations and investors a moment to catch their breath. However, experts say that it won’t be enough to undo the damage caused by his policies, which have had a significant impact on the economy and America’s reputation.
As one expert noted, “The bond market spooked the president,” with the warning signs being ignored until now. The market’s reaction to Trump’s announcement suggests that investors are still anxious about the future of trade tensions and tariffs.
Source: https://edition.cnn.com/2025/04/09/business/trump-stocks-bond-market-nightcap/index.html