US stock market shows positive rebound after import duty announcement

For the first time since the announcement of increased import duties by US authorities, the main indices of the New York Stock Exchange demonstrated positive dynamics.

This development marks a reversal in market trends following President Donald Trump’s decision to impose higher tariffs on imports from 185 countries, Caliber.Az reports via Russian media.

During the early minutes of trading on April 8, the Dow Jones Industrial Average surged by 3.58 per cent, reaching a closing level of 39,325.44 points, compared to the previous trading session. Similarly, the S&P 500 index rose by 3.4 per cent, reaching 5,234.16 points, while the Nasdaq Composite climbed by 3.73 per cent, reaching 16,185.24 points.

This marked the first significant rebound in the US stock market since April 2, when President Trump approved the imposition of increased import duties. The base tariff was set at 10 per cent, with some countries facing tariffs as high as 30-55 per cent, including some of Washington’s closest allies. This move led to a prolonged period of market declines, particularly in major stock exchanges worldwide.

On April 7, the US stock market saw significant losses, with the S&P 500 dropping by 4.71 per cent, Nasdaq declining by 5.15 per cent, and the Dow Jones falling by 4.44 per cent. Other major global markets mirrored this negative sentiment, with the MSCI Asia Pacific Index collapsing by 8.5 per cent, the Hong Kong Hang Seng plunging by more than 13 per cent, and the Japanese Topix and Nikkei indices falling by 7.8 per cent. In Europe, the Amsterdam stock exchange fell by 5.5 pe rcent, while the bourses in Stockholm and Copenhagen were down nearly 7 per cent.

Analysts attributed the initial market declines to widespread panic and uncertainty following the announcement of Trump's tariffs, with investors reacting negatively to the prospect of a prolonged trade conflict. The recent market rebound, however, has injected some optimism, though experts remain cautious about the long-term effects of the tariffs on global trade and the economy.

By Vafa Guliyeva