It’s official: US stocks have now recovered all of their historic ‘Liberation Day’ losses
All three major US indexes are up since President Donald Trump announced his “Liberation Day” tariffs on April 2.
Stocks have recouped their losses since President Donald Trump’s “Liberation Day” tariffs tanked markets, with investors on Monday cheering a big de-escalation in the US-China trade war.
Major stock averages surged at the opening bell as investors reacted to the progress on trade negotiations with China, announced on Sunday. The S&P 500, which plummeted as much as 12% in the days following April 2, was up over 3% since the tariffs were announced. The Dow Jones Industrial Average, which fell as much as 10%, edged into positive territory on Monday, rising 0.19% since April 2.
The Nasdaq-100, which was the first to fully recover its losses since the historic tariffs-fueled sell-off, was up more than 6% on Monday since April 2. The index, which is up 17% from its low on April 8, is on track to end Monday’s session in a bull market, which is defined as a 20% gain from the most recent low.
Nasdaq 100
S&P 500
Dow Jones Industrial Average
Here’s where major indexes stood around 2:10 p.m. ET on Monday:
- S&P 500: 5,832.47, up 3.05%
- Dow Jones Industrial Average: 42,343.15, up 2.65% (+1,093.77 points)
- Nasdaq 100: 20,819.45 up 3.78%
“The market reaction was quick and spectacular,” David Morrison, a senior market analyst at Trade Nation, wrote in a note. “It’s almost as if it never happened. Although we know it did. And investors appear to have forgotten that significant trade damage has already been inflicted.”
US-China trade tensions have been one of the biggest headwinds for the market since the tariff announcement last month. After Trump paused most “reciprocal” tariffs on April 9, he kept pressure up on China by increasing the tariff rate on goods from the country to 145%.
The agreement over the weekend is set to see the US slash tariffs on Chinese goods from 145% to 30%, while China plans to cut its tariffs on imports from the US from 125% to 10%.
“I would imagine in the next few weeks, we will be meeting again to get rolling on a more fulsome agreement,” Treasury Secretary Scott Bessent, who spoke with Chinese officials over the weekend, told CNBC on Monday.
Markets were up broadly on the news. The US tech sector rallied, while stocks in Asia ended the day higher.
- Nvidia: +4.53%.
- Amazon: +8.34%.
- Apple: +6.36%.
- Tesla: +8.05%.
