Major stock markets experienced significant gains today, rebounding after three days of intense selling as investors showed optimism that Washington might be open to negotiating some of its aggressive tariffs.
European shares recovered from 14-month lows, following four consecutive days of heavy declines, although investors are still closely monitoring developments as countries react to the sweeping US tariffs.
The CAC in Paris climbed 173 points (2.5%) to finish at 7,100, the DAX in Frankfurt soared 490 points (2.48%) to 20,280, and London’s FTSE index increased by 208 points (2.7%) to close at 7,910.
Dublin’s ISEQ index rose by 376 points (4%) to end at 9,684. Shares in Uniphar rose by 6% to €2.67, while shares in Ryanair surged 5.9% to €18.32. Conversely, shares in Malin Corporation dropped 4.3% to €8.61, and shares in Origin Enterprises decreased by 0.33% to €3.06.
By 5:40 PM Irish time, the Dow Jones was up 756 points (1.99%) at 38,722, the S&P 500 gained 105 points (2%) to reach 5,167, and the Nasdaq increased by 342 points (2.19%) to 15,945.
Oil prices also made a recovery from recent losses.
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“This seems to be an oversold rally” in stocks, remarked Adam Sarhan, chief executive of 50 Park Investments in New York.
“The real question is, has anything changed? The tariffs are clearly the driving force here… Any sign of de-escalation in tariff tensions would be a positive indication for investors.”
Stocks had sharply declined following US President Donald Trump’s announcement last Wednesday of extensive tariffs, raising concerns that a global trade war could usher the economy into a recession.
Trump indicated on Tuesday that he is awaiting a response from China before customs duties exceeding 100% take effect, but other administration officials mentioned that they would not prioritize negotiations with China.
Trump has already enforced a 10% tariff on nearly all imports into the world’s largest consumer market, with targeted tariffs of up to 50% on numerous trading partners set to take effect on Wednesday.
Trump stated that Japan is sending a delegation to discuss trade. His decision to impose a 25% tax on auto imports, along with a reciprocal 24% tariff on other Japanese goods, is expected to have a significant adverse impact on Japan’s export-driven economy.
