In one of the most dramatic back-to-back sessions in market history, the S&P 500 and Dow Jones Industrial Average delivered a story of extremes—plunging on April 8 only to soar on April 9. The catalyst? U.S. President Donald Trump’s trade policy flip-flop, which left investors reeling from one of the greatest reversals ever recorded, followed by a euphoric relief rally the next day.
April 8: Historic Reversal, Deep Losses
Tuesday, April 8 marked one of the steepest intraday reversals in the past 50 years for the S&P 500. The benchmark index opened over 2.5% higher, buoyed by hopes that global trade disruptions might ease. However, that optimism crumbled after Trump doubled down on his aggressive tariff regime, confirming a sweeping 50% levy on Chinese imports and reaffirming a 25% duty on vehicle imports from Japan and the EU.
The S&P 500 ended the day down -1.57%, representing a staggering 4.2 percentage point swing from its intraday high—a “rug pull” of historic proportions. Meanwhile, the Nasdaq Composite dropped another 2.1%, bringing total losses from its recent record high to over 25%, officially entering bear market territory.
Gold surged past $3,000 again as investors rushed to safety. Oil tumbled. Sentiment was deeply risk-off. For many, it felt like the start of a global economic reckoning.
April 9: Tariff Reversal Sparks a Relief Rally
Then came the stunning reversal.
Just 24 hours later, President Trump abruptly announced he would reverse several of the newly enacted tariffs, citing “encouraging progress” in backchannel trade discussions with major partners. The announcement sparked a buying frenzy.
The Dow Jones Industrial Average surged nearly 3,000 points, posting one of its largest single-day point gains in history, while the S&P 500 rebounded over 6%, retracing most of the previous day’s loss.
The market reaction was as swift as it was polarising: what looked like the onset of a trade war-fueled recession quickly gave way to renewed risk appetite and optimism that Washington’s hardline stance may be more negotiable than markets feared.
The Big Picture: Whiplash Risk Is Real
These two days reveal the unprecedented sensitivity of global markets to U.S. trade policy. From despair to euphoria, April 8 and 9 illustrate how fragile sentiment has become—fueled not by economic fundamentals, but by policy volatility.
Volatility traders thrived; long-term investors, however, were left scrambling. The message from markets is clear: risk management has never been more crucial.
As JDR Securities continues to monitor this developing story, our focus remains on helping clients navigate volatility with discipline, data, and a clear eye on opportunity amidst uncertainty.
Key Takeaways:
April 8 saw one of the sharpest S&P 500 intraday reversals in 50+ years
Trump’s tariff escalation fueled broad selloffs across equities and commodities
April 9 delivered a historic rebound following a sudden tariff reversal
Volatility is likely to persist as trade negotiations evolve
Stay tuned for more updates and real-time analysis from the JDR team.
