Leveraged opportunity: Trump’s tariff pause sends global markets to the moon

After Wall Street’s remarkable rebound on Wednesday, Asian and European markets soared on Thursday as investors reacted positively to U.S. President Donald Trump’s announcement of a temporary pause on new tariffs for more than 75 countries.

The move, which came just days after escalating trade tensions with China, offered much-needed relief to global markets. While Trump said he would maintain a 10% baseline tariff on dozens of U.S. trade partners, he also introduced a 90-day reprieve for many allies from further increases, sparing them from additional duties that were set to take effect Wednesday.

At the same time, he raised tariffs on Chinese goods to a staggering 125% following retaliatory measures from Beijing over the weekend.

The announcement triggered a wave of optimism across global markets, with Asian investors pouring into equities.

Tech giants led the Asian market rebound

Hong Kong’s Hang Seng Index led the regional rebound, climbing more than 4% after plunging 13% on Monday—its worst single-day loss since the 1997 Asian financial crisis. Mainland China’s Shanghai Composite Index also rose over 1%, showing resilience despite being directly targeted by the heightened U.S. tariffs.

Japan’s Nikkei 225 Index jumped more than 9%, as investors bet on export-driven companies recovering from trade-related fears. South Korea’s KOSPI Index and Singapore’s Straits Times Index each advanced over 5%, Australia’s S&P/ASX 200 Index and Indonesia’s Jakarta Composite Index (JCI) gained more than 4%, mirroring the regional uptrend.

Taiwan’s TAIEX Index posted its largest single-day gain on record, surging 9.3% after suffering its worst-ever performance on Monday. Vietnam’s VN-Index, which had faced some of the steepest tariff threats, climbed 6.5%. Meanwhile, the PSEi Index in the Philippines and New Zealand’s NZX 50 Index also closed significantly higher, buoyed by the global shift in sentiment.

Technology stocks were at the forefront of the rally. Japanese tech giants such as Sony, Sharp, Panasonic, and SoftBank all saw double-digit gains. Apple suppliers performed especially well. AAC Technologies, listed in Hong Kong, surged by 23%, while Taiwan-based Hon Hai Precision Industry, also known as Foxconn, rose nearly 10%. Other sectors, including airlines, automakers, and casino operators, also experienced heavy buying.

European stocks and Borsa Istanbul mirror the rally

European stock markets also see sharp upward movements in early trading on Thursday, following strong gains across Asian markets.

Germany’s DAX index in Frankfurt jumped over 7% to 21,124.44 points, France’s CAC 40 in Paris rose 7.3% to 7,362.06, and the UK’s FTSE 100 in London climbed 5.3% to 8,089.72. The surge came on the heels of a global market upswing sparked by easing trade tensions.

Similarly, Türkiye’s stock exchange, Borsa Istanbul, opened with a 3.27% jump in its benchmark BIST 100 Index, led by banking stocks.

Gold, cryptocurrencies, and oil join the rebound

Gold prices per ounce rebounded to their previous all-time high, revisiting the $1,300 mark as of 0500 GMT on Wednesday. The precious metal, which has broken 14 record highs year-to-date and surged over $400 with an 18% gain, had recently faced a sharp downturn. The escalation in tariffs triggered panic across global markets and prompted profit-taking, dragging gold prices below the $1,300 level before the recent recovery.

Cryptocurrencies also participated in the rebound, with overall market capitalization rising more than 7% and adding $200 billion to reach $2.65 trillion. Bitcoin, the largest and most valuable digital asset, surged 7% to climb back above $82,000, recovering part of its losses after nearing the $110,000 mark during the early days of Trump’s presidency.

Other major cryptocurrencies saw significant gains as well—XRP and Ether rose by 12%, while Cardano’s ADA and Solana’s SOL each gained 10%.

Meanwhile, oil futures posted a modest recovery from their lowest levels since 2021. Brent crude rose to $64.60 per barrel, while West Texas Intermediate (WTI) crude climbed to $61.60.

Wall Street recovers $4 trillion in minutes

The rally followed an extraordinary session on Wall Street, where U.S. markets recorded their largest one-day gains in decades.

The Dow Jones Industrial Average, which tracks 30 major American companies, soared by 7.87%, or 2,962.86 points, closing at 40,608.45. The S&P 500, which represents a broader swath of U.S. businesses, jumped 9.52% to 5,456.90, marking its biggest daily gain since the 2008 global financial crisis. The tech-heavy Nasdaq Composite surged by 12.16% to 17,124.97, recording its second-best day ever and the largest rise since January 2001.

The rally was led by the so-called “Magnificent Seven”—Amazon, Meta, Nvidia, Alphabet, Microsoft, Apple, and Tesla—which saw share prices climb between 9.88% and 22.69%. Major U.S. airlines also saw dramatic recoveries, with Delta Air Lines and United Airlines jumping 23.38% each, while American Airlines rose by more than 22.6%. Shares of retail giant Walmart increased by over 9.5%.

The Chicago Board Options Exchange Volatility Index (VIX), often referred to as Wall Street’s “fear gauge,” dropped by 35.75% to 33.62, reflecting a sharp decline in market anxiety.

In total, more than $4 trillion was added to global equity valuations within just ten minutes of Trump’s announcement.