Tue Apr 08 14:20:00 UTC 2025: **US Stocks Rebound Sharply After Tariff-Fueled Plunge**

NEW YORK (Yahoo Finance) — US stocks staged a dramatic rebound on Tuesday, surging after a day of intense volatility spurred by President Trump’s tariff policies. The S&P 500 jumped 3.8%, the Nasdaq Composite soared over 4.3%, and the Dow Jones Industrial Average gained 3.7%, adding roughly 1,400 points. This followed Monday’s sharp losses, which saw the Dow fall 350 points and the S&P 500 record a historic three-day decline.

The rally was fueled by optimism surrounding the commencement of US-Japan bilateral trade talks, announced by Treasury Secretary Scott Bessent. This eased concerns that the White House was unwilling to negotiate tariff reductions. The Nikkei 225 in Tokyo also rebounded sharply, closing up 6%.

However, the threat of a full-blown trade war with China remains. China vowed to “fight to the end” against what it termed US “blackmail,” following Trump’s threat of additional 50% tariffs on Chinese goods. Despite this, Trump also stated on Truth Social that trade talks with South Korea were progressing well, with a South Korean team en route to the US. He added that China also wants a deal but doesn’t know how to begin negotiations.

Leading Wall Street figures, including JPMorgan’s Jamie Dimon and BlackRock’s Larry Fink, have voiced concerns about the economic impact of Trump’s tariffs. Even Tesla CEO Elon Musk has offered cautious criticism.

While some, including Bank of America data showing $8 billion in net stock purchases last week by clients, suggest investors are “buying the dip,” the situation remains volatile. The market’s swift reaction to headlines underscores the uncertainty and investor eagerness for a resolution. The tech sector, heavily impacted by previous tariff announcements, experienced a significant recovery Tuesday.

Despite this rebound, analysts remain cautious, pointing to the potential for continued disruption to global supply chains. Levi Strauss, for example, while reporting strong earnings, acknowledged uncertainty regarding the long-term impact of tariffs. The market’s future trajectory hinges on the ongoing trade negotiations and the resolution, or escalation, of the US-China trade dispute.

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