FT: US Shares Soar After Trump ‘Rejects’ Trade War
- 10.04.2025, 12:20
10 April was the best for the index since 2008.
US President Donald Trump's decision for a 90-day pause on imposing additional duties on countries willing to negotiate has led to a surge of shares. The move was perceived as a rejection of a full-scale trade war.
The Financial Times writes that US stocks jumped immediately after Trump's statement, with the S&P 500 index rising 9.5 per cent. Meanwhile, Japan's Topix index rose 8 per cent and Taiwan's Taiex rose 9.3 per cent. The Stoxx Europe 600 index was up 5.5 per cent in early trading, with Germany's Dax up 8.3 per cent and the FTSE 100 up 6.1 per cent.
The massive rally of US shares has increased the market value of the S&P 500 by about $4.3 trillion. April 10 was the best for the index since 2008, and for the Nasdaq since 2001 - the index rose as much as 12%.
The sell-off in U.S. government debt, the backbone of the global financial system, eased after Trump's decision and a Treasury auction that showed strong international demand. The 10-year bond yield, which rose 0.24 percentage points on Wednesday, ended the day in New York with a 0.08 percentage point rise up to 4.35 per cent.
Wall Street banks have warned that the duties would push the US economy into recession while raising inflation and unemployment.
At the same time, Reuters writes that gold rose in price by more than 1% amid the escalation of the trade war between the United States and China. Thus, spot gold rose 1.2 per cent to $3,120.01 an ounce, while US gold futures rose 1.9 per cent to $3,137.20.
‘If we enter a period of slow growth, which is our base case scenario, we believe rates will eventually come down and push gold higher because inflationary concerns will still be with us for most of the year due to the impact of duties. We will eventually see $3,200, probably by the end of the month if not sooner,’ said Marex analyst Edward Meir.
Gold has risen more than 18 per cent over 2025, helped largely by Trump's duties, expectations of interest rate cuts by the Federal Reserve, geopolitical tensions in the Middle East and Ukraine, active central bank buying and rising investment in gold-backed exchange-traded funds. If inflationary pressures force the Fed to raise interest rates, the metal will lose its appeal.
It is worth noting that spot silver rose 0.7 per cent to $31.24 an ounce, platinum rose 0.2 per cent to $938.95 and palladium fell 0.6 per cent to $926.41.