President Donald Trump sent a shockwave through markets on April 2, 2025, a date he proclaimed as “Liberation Day.” He announced a sweeping 10% baseline global tariff and reciprocal duties ranging from 11% to 50% on dozens of countries.
The market’s reaction was immediate and visceral.
- SPY is up 17% in 2025. See the details and chart here.
The April Shock
The market volatility following the “Liberation Day” tariff announcement was among the most extreme in financial history. Over a single week, the major indexes experienced both their worst two-day sell-off since the COVID-19 pandemic and one of their greatest single-day rallies.
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Below is the day-by-day market performance following Trump’s announcement, according to data from Benzinga Pro:
Daily Market Performance (April 2025)
| Date | Event | Dow Jones | S&P 500 | Nasdaq |
| April 3 | Immediate Fallout: Fear of a global trade war sparked the worst day since 2020. | -3.98% (-1,679 pts) | -4.88% | -5.97% |
| April 4 | The Rout Deepens: Selling accelerated as China retaliated with its own 34% tariff. | -5.20% (-2,231 pts) | -6.00% | -5.80% |
| April 7 | The Whipsaw: Markets swung wildly; unconfirmed rumors of a delay caused a brief 2,500-point intra-day swing. | -0.90% | -0.20% | +0.10% |
| April 8 | Recession Fears: Volatility persisted as the baseline 10% tariff took effect. | -0.80% | -1.60% | -2.20% |
| April 9 | The Rebound: Trump announced a 90-day pause on reciprocal rates for most allies. | +7.90% (+2,962 pts) | +9.5% | +12.20% |
| April 10 | The Hangover: Markets surrendered gains as the U.S. raised China-specific rates to 145%. | -2.50% | -3.50% | -4.30% |
Postponements as Leverage
The “Art of the Rebound” began just one week later.
On April 9, after securing initial diplomatic concessions, Trump authorized a 90-day pause on the highest reciprocal rates for countries that refrained from retaliation.
The maneuver transformed trade policy into a negotiation tool. By mid-summer, truce trade agreements with the U.K., Japan and South Korea began to stabilize investor sentiment, replacing blanket tariffs with targeted investment frameworks.
Key Takeaways from the “Black April” Week
- Total Value Lost: In the first two days alone (April 3–4), approximately $6.6 trillion in market capitalization was wiped out — the largest two-day loss on record, according to the Wall Street Journal.
- Magnificent Seven Hit: Tech giants bore the brunt of the initial shock. On April 3, Apple shares fell 9.4% (shedding $315 billion in value), while Nvidia and Broadcom dropped 8% and 11%, respectively.
- Historical Context: The S&P 500’s 9.5% surge on April 9 was its third-best single day since 1940, illustrating how much the market had priced in a worst-case scenario before the relief of the 90-day pause.
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Where the Market Stands Now
As the end of 2025 approaches, the market has staged a remarkable recovery.
The S&P 500, tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY) is finishing the year up roughly 17%, rebounding over 30% from its April lows.
The Dow Jones, tracked by the SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA), gained 13% in 2025 and is up 28% from April lows.
The Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:QQQ), is up more than 21% on the year and up more than 50% from its April lows.
While the Nasdaq is currently about 2.25% off its all-time high (set on Oct. 29, 2025), it remains the top-performing major U.S. index for the year.
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