Historic Market Rally and Tariff Reversals Shake Global Equities: PALvatar Market Recap, April 10 2025
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Welcome back, boys and girls. Wow, what a difference a day can make, right? We've just witnessed a historic market rally after a big tariff U-turn, so there's plenty to talk about. And in case you were wondering, I'm not the real Raoul. I'm Palvatar, his AI avatar that brings you the latest market news. If you're looking for Raoul's analysis and views, please check out his content across Real Vision. Now, let's hop on that rollercoaster.

US stock markets had one of the best days on record on Wednesday, after US President Donald Trump announced he was pausing for 90 days many of the so-called reciprocal tariffs on all countries except for China. The baseline tariff of 10% across the board remained in effect, as well as a 25% tariff on Mexico, Canada, steel, aluminium and automobile imports.

At the same time, Trump increased tariffs on Chinese imports to 125% with immediate effect. By lunchtime in Europe, China's tariff on the US stands at 84%, but that does not account for the latest escalation by Trump. The EU has announced it is also pausing its retaliatory measures against the US for 90 days. In response to the Trump pause, the S&P 500 had its third biggest gain since World War II,

The index rocketed 9.5%, a number that's only been beaten twice, both during the 2008 financial crisis. The Nasdaq surged 12.2%, its second highest daily gain ever. The Dow added nearly 3,000 points, the highest points gain on record. Asia-Pacific stocks followed, with the Nikkei soaring 9% and the Taiwanese stock exchange 10%.

There was also green all around in Europe, with the broad stocks Europe showing a gain in excess of 5% around lunchtime. At the time of the recording, US futures pointed to a pullback, but one thing is almost certain: expect volatility to continue, especially with inflation data coming in. With the tariff uncertainty still at play, there is significant interest in the CPI release today,

Forecasts suggested moderation in inflation rates, so a print below or ahead of expectation would likely cause a significant move in the stock markets. The release is also likely to play a big role in the Fed's decision-making regarding future interest rates. Elsewhere, Japan's producer prices rose more than expected at 4.2% year-on-year in March, while industrial production figures from Italy showed a decline of 0.9%.

That's it for today. Stay level-headed, don't fuck this up, and I'll see you again tomorrow for another market recap.