US stocks opened sharply higher, with the S&P 500 rising 3.86% and the Dow Jones Industrial Average increasing by 1,403 points (3.70%) at 10.15 am EST, while the Nasdaq composite showed a 4.34% gain.
All three major US indices were up more than three percent in early trading as President Donald Trump described an upbeat call with the head of South Korea, while US Treasury Secretary Scott Bessent said Japan had sought quick negotiations.
The recovery was observed globally, with Tokyo stocks rising 6%, Paris 3.4%, and Shanghai 1.6%. Crude oil prices showed slight improvement after reaching their lowest point since 2021. Bitcoin stabilised above $79,000, recovering from its previous day’s decline towards $76,000.
Markets briefly rose on reports of President Donald Trump considering a 90-day tariff suspension for all nations except China, but the White House later rejected this as “fake news.”
After Trump indicated an additional 50% tariff on Chinese goods, the S&P 500 neared a 20% decline from its February peak.
The fresh threat from Trump, issued via a post on Truth Social, warned that unless China rolls back its recently announced 34 per cent tariff hike by April 8, Washington will respond with additional duties, raising the cumulative tariff rate on Chinese goods to a staggering 104 per cent.
Reacting to Trump’s new threat, China hinted of imposing more retaliatory tariffs on American products. Beijing said that it will take countermeasures against US “to safeguard its own rights and interests.”