Trump's Tariffs — And The Art Of The Rebound

President Donald Trump sent a shockwave through markets on April 2, 2025, a date he proclaimed as “Liberation Day.” He announced a sweeping 10% baseline global tariff and reciprocal duties ranging from 11% to 50% on dozens of countries. The market's reaction was immediate and visceral. SPY is up 17% in 2025. See the details and chart here. The April Shock The market volatility following the “Liberation Day” tariff announcement was among the most extreme in financial history. Over a single week, the major indexes experienced both their worst two-day sell-off since the COVID-19 pandemic and one of their greatest single-day rallies. Read Next: Silver Rallies After Worst Day In 5 Years — Metals Bounce Back Below is the day-by-day market performance following Trump's announcement, according to data from Benzinga Pro: Daily Market Performance (April 2025) DateEventDow JonesS&P 500NasdaqApril 3Immediate Fallout: Fear of a global trade war sparked the worst day since 2020.-3.98% (-1,679 pts)-4.88%-5.97%April 4The Rout Deepens: Selling accelerated as China retaliated with its own 34% tariff.-5.20% (-2,231 pts)-6.00%-5.80%April 7The Whipsaw: Markets swung wildly; unconfirmed rumors of a delay caused a brief 2,500-point intra-day swing.-0.90%-0.20%+0.10%April 8Recession Fears: Volatility persisted as the baseline 10% tariff took effect.-0.80%-1.60%-2.20%April 9The Rebound: Trump announced a 90-day pause on reciprocal rates for most allies.+7.90% (+2,962 pts)+9.5%+12.20%April 10The Hangover: Markets surrendered gains as the U.S. raised China-specific rates to 145%.-2.50%-3.50%-4.30% Postponements as Leverage The “Art of the Rebound” began just one week later. On April 9, after securing initial diplomatic concessions, Trump authorized a 90-day pause on the highest reciprocal rates for countries that refrained from retaliation. The maneuver transformed trade policy into a negotiation tool. By mid-summer, truce trade agreements with the U.K., Japan and South Korea began to stabilize investor sentiment, replacing blanket tariffs with targeted investment frameworks. Key Takeaways from the "Black April" Week Total Value Lost: In the first two days alone (April 3–4), approximately $6.6 trillion in market capitalization was wiped out — the largest two-day loss on record, according to the Wall Street Journal. Magnificent Seven Hit: Tech giants bore the brunt of the initial shock. On April 3, Apple shares fell 9.4% (shedding $315 billion in value), while Nvidia and Broadcom dropped 8% and 11%, respectively. Historical Context: The S&P 500's 9.5% surge on April 9 was its third-best single day since 1940, illustrating how much the market had priced in a worst-case scenario before the relief of the 90-day pause. Read Next: Top 10 Most Shorted Stocks: Lucid, MARA, Hims and More Where the Market Stands Now As the end of 2025 approaches, the market has staged a remarkable recovery. The S&P 500, tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY) is finishing the year up roughly 17%, rebounding over 30% from its April lows. The Dow Jones, tracked by the SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA), gained 13% in 2025 and is up 28% from April lows. The Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:QQQ), is up more than 21% on the year and up more than 50% from its April lows. While the Nasdaq is currently about 2.25% off its all-time high (set on Oct. 29, 2025), it remains the top-performing major U.S. index for the year. Read Next: Metals Acting Like Meme Stocks—Unconfirmed Rumor Of Major Silver Margin Call Photo: Shutterstock