#MarketAlert | US markets open; #Cisco shares jump 6.1% to hit highest level since 2000 pic.twitter.com/EMm1AXSwPZ
— ET NOW (@ETNOWlive) February 13, 2025
The stock market rallied on Thursday as President Trump announced plans for reciprocal tariffs but delayed their implementation until April. The Dow Jones Industrial Average jumped over 300 points, or 0.7%, while the S&P 500 rose 1% to 6,115.07, nearing its record high. The tech-heavy Nasdaq Composite gained 1.5%, led by strong performances from companies like Nvidia and Tesla.
During an Oval Office briefing, Trump called for “fair and reciprocal” tariffs on all U.S. trading partners. However, the measure he signed would not go into effect before April, allowing time for negotiations with impacted nations.
Stock Market LIVE: Sensex erases gains to trade flat, Nifty holds 23000; pharma index up 1.6%https://t.co/hSDVrWY1Y1
— ET NOW (@ETNOWlive) February 13, 2025
Trump stated, “I will charge a reciprocal tariff, meaning whatever countries charge the United States of America, we will charge them.”
“Rule of 20” (which says S&P 500 is fairly valued when P/E and CPI y/y add to 20) metric suggests market has gotten quite expensive over past year pic.twitter.com/KWAPGyFX1s
— Liz Ann Sonders (@LizAnnSonders) February 13, 2025
Howard Lutnick, standing alongside the president, announced that all studies on reciprocal tariffs should be completed by April 1, after which the president will be free to enact them.
Dow Jones Industrial Average and S&P 500 aren’t in sync much these days … indexes have been increasingly moving in opposite directions over past couple years
@WSJ pic.twitter.com/kJBtD5mjsL— Liz Ann Sonders (@LizAnnSonders) February 13, 2025
Countries will have the opportunity to lower their tariffs on U.S. goods, potentially leading to less retaliation from the U.S.
Meanwhile, the January Producer Price Index (PPI) showed that wholesale inflation remained sticky.
stock market rallies on tariff delay
However, there was some positive news in the inflation readings, with the core Personal Consumptions Expenditures (PCE) index expected to show a decrease in price increases.
Following this, the 10-year Treasury yield slid nearly 10 basis points, aiding stock market gains. In the tech sector, Nvidia and Tesla led the rally, while Meta’s shares dipped just below the flat line after reaching an 11th high of 2025. Shares of Arm rose more than 7% after reports that the company will launch a new AI chip with Meta as one of its first customers.
The labor market showed signs of strength as U.S. jobless claims declined, providing further positive sentiment to the financial markets. Wall Street is increasingly considering the possibility of an interest rate hike from the Federal Reserve in the latter half of 2025 or in 2026, with Bank of America economist Aditya Bhave noting that while hikes remain unlikely, the recent inflation readings make them less inconceivable. As the stock market continues to react to various economic indicators and policy announcements, investors are closely monitoring the situation for further updates and potential impacts on their portfolios.
