On 9 April, the US stock markets increased by 12%, while the Asian markets also increased by 10% after the rally in the US. Meanwhile, the Indian markets were closed due to Mahavir Jayati’s holiday, but traders are monitoring global market trends.
Asian Markets Trade Higher Following US Rally
After massive profit on Wall Street, the Asian stock markets strengthened on 10 April. Major indices across the region posted important benefits:
- Japan’s Nikkei index is at 34,370, up 2,660 points or 8.39%.
- Korea’s KOSPI index is at 2400, up 110 points or 4.70%.
- Taiwan’s TAIEX index is at 19,020, up 620 points or 9.35%.
- The GIFT Nifty, traded on the NSE’s international exchange, is up nearly 800 points.
US Markets Post Historic Gains
Four days after a continuous decline, the US stock market strongly bounced back on 9 April, marked one of its best single-day performances in decades:
- The Dow Jones closed 2,962 points or 7.87% higher at 40,608, its biggest single-day gain since March 2020.
- The S&P 500 index rose 9.52% to 5,456.90, its biggest single-session rise since 2008.
- The Nasdaq Composite, an index of tech stocks, rose 12.16% to 17,124, its biggest gain since January 2001.
- Nearly 30 billion shares were traded, making it the most-traded day in Wall Street history.
Market Recovery After Four Days of Decline
On April 8, the US stock market closed in decline for the fourth consecutive trading day. The Dow Jones index fell by 320 points or 0.84% to 37,645. It had gained about 4% in early trade. That is, it closed about 5% below the upper level. At the same time, the S&P 500 index of the US market closed at 4,982 with a fall of 79.48 points or 1.57%. The Nasdaq Composite index of technology shares fell by 335 points or 2.15%. It closed at 15,268.
Dow Jones fell by 10% in three consecutive trading days. After Tuesday’s fall, the total fall of Dow Jones in four trading days was more than 11%. However, the rise in a single day has almost covered this fall of the market.
What’s Driving Market Volatility?
On April 3, US President Trump imposed tit for tat tariffs across the world. He has announced a 26% tariff on India. 34% tariff will be imposed on China, 20% on European Union, 25% on South Korea, 24% on Japan, 46% on Vietnam and 32% on Taiwan.
This move has started a tariff war. In response to America’s tariff, China announced a 34% retaliatory tariff on America. After China’s tariff, America announced an additional 50% tariff. This made the total tariff 104%.
In response to Trump’s action, China decided to impose a retaliatory tariff of 84%. On April 9, Trump once again increased the tariff on China to 125%, but postponed the tariffs on all other countries that were to be implemented from April 9 for 90 days.
Indian Stock Market Update: April 9 Performance
The Indian market index Sensex fell 380 points yesterday on April 9 and closed at 73,847. Nifty also fell 137 points and closed at 22,399. IT, metal, banking and pharma stocks have fallen the most. NSE’s Nifty PSU i.e. government bank is down by 2.52%. Nifty IT closed down by 2.19%, Nifty Pharma by 1.97%, Nifty Realty by 1.90% and Nifty Metal by 1.48%.
