S&P 500 rebounds with 9.5% gain after Trump’s April 2 'Liberation Day' tariffs triggered 19% downturn

After President Trump's April 2 tariff announcements caused the S&P 500 to drop over 19%, the index rebounded to see a remarkable 9.5% gain amid renewed investor confidence.

Sources:

Updated 2h ago

The Headline

Market Recovery: Rebound from Tariff Shock

I still very much believe that the primary driver of equities right now is going to be all these headlines coming out of Washington.

Michael Kantrowitz

Chief Investment Strategist at Piper Sandler

The second 100 days of Donald Trump's 2025 presidency could bring a pivot toward lower tariffs, lower rates and lower taxes — a bullish trifecta for risk assets.

Hartnett

Market rebound percentage

0.3%

Daily performance gain percentage

9.5%

Key Facts

Investor confidence surged after the initial bout of uncertainty, and the S&P 500 rebounded 0.3% from its lows as positive earnings from big tech support stability.
After a pause on tariffs for non-retaliating countries, the S&P 500 witnessed its best daily performance in nearly 17 years with a 9.5% gain.

Expert Insights: Drivers Behind Market Recovery

April was an absolutely seismic month in financial markets, as the announcement of US reciprocal tariffs led to a huge global sell-off.

A sustainable bull market would need three things: lower Treasury yields under 4%, consistent earnings growth above 5%, and a meaningful U.S.-China tariff rollback.

Hartnett

Key Facts

Experts believe that the market's recovery is largely due to Trump's shifting tone on tariffs, leading to an acceptance of lasting tariffs.
As long as the U.S. labor market remains stable, fears of a recession may be regarded as premature.

Background Context

The Initial Downturn: Context of Market Turmoil Over Tariffs

Market downturn after tariff announcements

19%

Decline percentage over three trading days

10%

Loss percentage over the course of seven days

12%

Key Facts

The US stock market experienced a dramatic downturn, with the S&P 500 falling over 19% within days after President Trump's April 2 'Liberation Day' tariff announcements.
April was characterized as an absolutely seismic month in financial markets due to the announcement of US reciprocal tariffs leading to a global sell-off.

S&P 500 rebounds with 9.5% gain after Trump’s April 2 'Liberation Day' tariffs triggered 19% downturn

Market Recovery: Rebound from Tariff Shock

Related Videos

Expert Insights: Drivers Behind Market Recovery

The Initial Downturn: Context of Market Turmoil Over Tariffs

Source Citations

S&P 500 rebounds with 9.5% gain after Trump’s April 2 'Liberation Day' tariffs triggered 19% downturn

Market Recovery: Rebound from Tariff Shock

Related Videos

Expert Insights: Drivers Behind Market Recovery

The Initial Downturn: Context of Market Turmoil Over Tariffs

Other Facts in these Reports

Source Citations